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"Points" Are Defined As

Question 12

Multiple Choice

"Points" are defined as:


A) a fee charged by the lender to the seller for extending the loan to the buyer
B) a fee charged by the lender to the borrower for extending the loan
C) a fee charged by the seller to the buyer as a part of the selling price
D) a fee charged by the lender to the seller to defray the risk of a loan that can't have a higher interest rate because of regulations governing the allowable rates

Correct Answer:

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