On the purchase of a home, one "point" is equal to
A) $100.
B) $1,000.
C) 1% of the amount being financed.
D) 1% of the purchase price.

Name: On the purchase of a home, one "point" is equal to A) $100. B) $1,000. C) 1% of the amount being financed. D) 1% of the purchase price.
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Question

Quizplus · Accepted Answer

One "point" in the context of home purchasing is equal to 1% of the amount being financed, not the total purchase price. This is a fee paid to the lender at closing to reduce the interest rate on the loan.

On the Purchase of a Home, One "Point" Is Equal