Final answer:
Paying 2 discount points on a mortgage loan typically leads to a decrease in the interest rate.
Step-by-step explanation:
When a borrower pays discount points on a mortgage loan, it affects the interest rate and/or the total loan amount.
In this case, if the borrower pays 2 discount points, it means they are paying a percentage of the loan amount upfront to the lender. Paying discount points usually results in a lower interest rate, so Option 1: The interest rate decreases is true.