Fees charged by lenders as a condition of a mortgage loan that raises the effective rate of interest are called:

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Mortgage points are fees charged by lenders as a condition of a mortgage loan that raises the effective rate of interest. They are typically expressed as a percentage of the loan amount and can be paid upfront at closing or rolled into the loan amount. Each point typically equals 1% of the loan amount and can lower the interest rate by a certain amount, resulting in lower monthly payments over the life of the loan.

Fees Charged by Lenders as a Condition of a Mortgage