Typically,discount points should not be paid if the borrower will pay off the loan in ________ years or less.

Question

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Discount points are paid upfront to lower the interest rate on a mortgage. The longer the borrower holds the loan, the greater the potential savings from paying discount points. However, if the borrower is planning to pay off the loan in a relatively short amount of time (5 years or less), the cost of paying discount points may not be worth the potential savings. Therefore, in this scenario, it is typically not recommended to pay discount points.

Typically,discount Points Should Not Be Paid If the Borrower Will