Final answer:
The borrower will pay the points. Hence B is the correct answer.
Step-by-step explanation:
Points are fees that a borrower can pay to the lender at closing to lower the interest rate on the loan. In the case of a Cal-Vet loan, the borrower is responsible for paying the points.
Points are expressed as a percentage of the total loan amount. For example, if the loan amount is $200,000 and the points are 1%, the borrower would pay $2,000 in points at closing.