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what are points in the context of a mortgage? fees paid at closing to l…

Question

what are points in the context of a mortgage?
fees paid at
closing to lower
the interest rate
charges for late
mortgage
payments
an interest rate
that increases with
each payment
a discount given
for making early
payments

Explanation:

Brief Explanations

In mortgage context, "points" (or discount points) are fees paid at closing. Each point typically costs 1% of the loan amount and is used to lower the interest rate on the mortgage. The second option is about late payment charges, third is incorrect about interest rate behavior, fourth is about early payment discounts (not points). So the first option matches the definition of mortgage points.

Answer:

A. fees paid at closing to lower the interest rate