FinanceCâu 82 / 120
A discount point paid on a mortgage loan generally equals what percentage of the loan amount, and serves to:
a.Ten percent of the loan amount, paid to increase the rate
b.One percent of the sale price, paid to the seller
c.Five percent of the down payment, paid to the county
d.One percent of the loan amount, paid to lower the interest rate
Giải thích
One discount point equals one percent of the loan amount and is prepaid interest a borrower pays to buy down (lower) the interest rate. Points can reduce long-term interest costs in exchange for higher upfront cost. Whether points are worthwhile depends on how long the borrower keeps the loan.
Luyện miễn phí toàn bộ 120 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- The secondary mortgage market, including entities like Fannie Mae and Freddie Mac, primarily functions to:
- A prepayment penalty in a loan is a charge for:
- The federal Truth in Lending Act (TILA) primarily requires lenders to:
- A mortgage is best described as which type of instrument in the financing process?
- Which document contains the borrower's actual promise to repay the loan and the repayment terms?
- 'Equity' in a property is best defined as:
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