Points paid at closing represent
A) a fee paid to the lender.
B) part of the loan principal.
C) the property tax rate.
D) the interest rate on the mortgage.

Question

Quizplus · Accepted Answer

Points paid at closing are a fee paid to the lender, often in exchange for a lower interest rate on the mortgage. They do not represent part of the loan principal, the property tax rate, or the interest rate itself.

Points Paid at Closing Represent