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.
A)points
B)closing fees
C)escrow fees
D)security fees
E)none of the above

Question

Quizplus · Accepted Answer

Points are charges that must be paid at the time of the sale and are calculated as a percentage of the loan amount. They serve to raise the effective cost of the loan. Closing fees and escrow fees are also charges associated with obtaining a mortgage, but they may not necessarily be paid at the time of sale. Security fees are not typically associated with obtaining a mortgage. Therefore, the best choice that fits the given description is A) points.

You Have Just Obtained a Mortgage to Purchase Your Home