Rebecca paid extra money to reduce her mortgage interest rate. That extra money is called

Name: Rebecca paid extra money to reduce her mortgage interest rate. That extra money is called
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Question

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The extra money paid to reduce a mortgage interest rate is called points. Points are essentially prepaid interest, with one point equal to 1% of the total loan amount. Paying points upfront can lower the interest rate on the mortgage, resulting in lower monthly payments over the life of the loan.

Rebecca Paid Extra Money to Reduce Her Mortgage Interest Rate