What are discount points on mortgage

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Reference no: EM132024269

What are discount points on a mortgage?

A. Discount points are what you accumulate by paying a little extra every month. They will reduce the length of the mortgage.

B. It is a lower interest rate on your mortgage due to having a high FICO score (over 700).

C. It is paying more cash up-front in exchange for a lower interest rate over the life of the mortgage.

D. It is how the lender computes your creditworthiness. The more points the better.

Which of the following are true of mortgages?

A- A mortgage is a long-term loan secured by real estate.

B- Borrowers pay off mortgages over time in some combination of principal andinterest payments that result in full payment of the debt by maturity.

C- Less than 65 percent of mortgage loans finance residential home purchases.

D - All of the above are true of mortgages.

Only A and B of the above are true of mortgages.

Reference no: EM132024269

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