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All else equal, assuming the borrower paid any amount of points, which is true? The lenders yield on that loan will be reduced if the

  1. All else equal, assuming the borrower paid any amount of points, which is true?
    1. The lenders yield on that loan will be reduced if the loan is paid off early
    2. Paying points on a mortgage makes the loan less costly to the borrower
    3. Loan points have no effect on yield, just on the contract interest rate
    4. Paying off the loan early will increase the effective annual yield of the loan

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