Question

If a lender agrees to an $80,000 loan at 9% for 15 years with 2 loan discount points, what amount will be charged at closing for the points

Answer 1

points charged at closing will be $80,000 × 0.02 (2 points equal 2%) = $1,600.

Points, also called discount points, lower interest rates in exchange for prepayment. Lenders lower your closing costs in exchange for accepting higher interest rates. These terms may be used to mean something else. "Point" is a term that mortgage lenders have used for many years.

Mortgage points (sometimes called discount points) are fees paid to lower interest rates on home purchases or refinancing. Discount points cost 1% of your mortgage amount. For example, if you take a $ 100,000 mortgage, one point costs $ 1,000.

Learn more about loan discount points here:brainly.com/question/2764956

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