Which of the following are true statements about why lenders charge discount points? Points increase the...
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Which of the following are true statements about why lenders charge discount points? Points increase the lender's effective yield by shifting more of the loan's interest payments to the beginning of the loan term. Points provide lenders with a way to generate more current income from the loan. Points increase the borrower's incentive to refinance at a later date and, therefore, generate future business for the lender. Both a and b are true statements. a, b, and c are all true statements. Which of the following are true statements about why lenders charge discount points? Points increase the lender's effective yield by shifting more of the loan's interest payments to the beginning of the loan term. Points provide lenders with a way to generate more current income from the loan. Points increase the borrower's incentive to refinance at a later date and, therefore, generate future business for the lender. Both a and b are true statements. a, b, and c are all true statements.
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Answer rating: 100% (QA)
Both a and b are true a is true A higher portion of the interest is paid ... View the full answer
Related Book For
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo
Posted Date:
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