Final answer:
The correct answer is D. Points.
Step-by-step explanation:
The correct answer to the given question is D. Points.
Points refer to a payment made to the lender from the buyer, seller, or a third party that helps reduce the interest rate for the first few years of the loan. Points are typically expressed as a percentage of the total loan amount, where one point is equal to 1% of the loan. By paying points, borrowers can lower their monthly mortgage payments.