 Points (Loan Discount Points)
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Points (Loan Discount Points)
Prepaid interest on a loan that is usually paid at the time of closing. Each point is equal to 1% of the total amount of a loan (1 point, or 1%, of an $80,000 loan would be $800). Most lenders offer loans with several combinations of points and interest rates; generally, the lower the interest rate, the more points paid at settlement.
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