Question

Which of the following is a disadvantage to purchasing points

Answer 1

Answer:

B - closing costs are increased

Step-by-step explanation:

All of the other options are advantages to purchasing points. You want lower monthly payments (a), a tax break (c), and lower interest rate (d)

Answer 2

Answer:                

The correct answer is option B.closing costs are increased.

Step-by-step explanation:                        

Mortgage points or discount points refers to the fees paid directly to the lender during closing in exchange for a reduced interest rate.

In this way the buyer buys down the rate, that helps in reducing his monthly mortgage payments.

So, option A, C and D are the advantages of purchasing discount points.