Register
You have just obtained a mortgage to purchase your home. The​ ________ that you paid to obtain the loan are charges that must be paid at the time of the sale and serve to raise the effective cost of the
210k views
4 votes
You have just obtained a mortgage to purchase your home. The​ ________ that you paid to obtain the loan are charges that must be paid at the time of the sale and serve to raise the effective cost of the loan.

User Marwen Jaffel
by
4.2k points

1 Answer

4 votes

Answer:

Points

Step-by-step explanation:

Mortgage points or discount points are prepaid interest available when obtaining a mortgage.

When a lender charges the borrower points he is in effect increasing the yield on the loan above the interest rate agreed on the loan.

Borrowers can also offer points to the lender to obtain a reduced interest rate and reduced monthly payment in exchange for upfront payment of points.

User Wladimir
by
4.2k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

4.4m questions

5.6m answers

Other Questions

How can expansionary​ expenditure-based fiscal policy lead to crowding out in the​ economy? A. ​Expenditure-based fiscal policy increases the national​ debt, inducing​ forward-looking households and firms
In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his
Andrew doesn’t want to spend a lot of money on student loans, and does not qualify for grants. what is his best option for affording a bachelors degree
The method of appraisal in which the appraiser estimates the replacement cost of the building, deducts depreciation, and adds the value of the site is:________
The Yum and Yee food truck near the business school serves customers during lunch hour by taking orders and making fresh batches of stir-fry. Customers have only one choice during the lunch hour so that
Link Copied!