Question

Mortgage interest paid in advance of its due date, or the amount charged as discount points.

True
False

Answer 1

The statement 'Mortgage interest paid in advance of its due date, or the amount charged as discount points' is False.

Step-by-step explanation:

The statement 'Mortgage interest paid in advance of its due date, or the amount charged as discount points' is False.

When you pay mortgage interest in advance, it is called prepaid interest. Prepaid interest is not technically paid in advance of the due date, but rather it is paid at closing, along with other closing costs, before the mortgage contract begins.

Discount points, on the other hand, are a type of prepaid interest that a borrower can choose to pay at closing in order to lower the interest rate on the mortgage loan. They are not paid in advance of the due date either, but rather they are paid upfront as part of the closing costs.