A borrower obtains a $300,000 loan and pays 2 discount points. The dollar amount paid in points is:

Explanation

One discount point equals one percent of the loan amount, so two points on $300,000 is 0.02 times $300,000, which equals $6,000. Points are prepaid interest a borrower pays to lower the interest rate. They are calculated on the loan amount, not the purchase price.