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Each of the following is a reason for the existence of points on the front-end of a mortgage loan EXCEPT. Points compensate mortgage brokers who
Each of the following is a reason for the existence of points on the front-end of a mortgage loan EXCEPT.
- Points compensate mortgage brokers who find and filter loan applicants for the financial institutions who supply the long-term capital.
- Points are a way for the loan originator to make some profit on the front-end of the loan.
- Points provide some disincentive against early prepay off the loan by the borrower.
- All of the following are reasons that points exist.
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