what are \points\ in the context of a mortgage?\na discount given for making early payments\ncharges for…

what are \points\ in the context of a mortgage?\na discount given for making early payments\ncharges for late mortgage payments\nfees paid at closing to lower the interest rate\nan interest rate that increases with each payment

what are \points\ in the context of a mortgage?\na discount given for making early payments\ncharges for late mortgage payments\nfees paid at closing to lower the interest rate\nan interest rate that increases with each payment

Answer

Answer:

The third option (fees paid at closing to lower the interest rate)

Brief Explanations:

In mortgage context, "points" (also called discount points) are upfront fees paid at closing. Each point typically costs 1% of the loan amount and is used to lower the mortgage interest rate, reducing long - term interest costs. The first option is about early payment discounts (not mortgage points). The second is late payment charges (unrelated to points). The fourth describes a type of interest rate (not points). So the correct option is the one stating "fees paid at closing to lower the interest rate".