Finance
Loan Points
A concise definition for the California Real Estate Exam study guide.
Definition
One point = 1% of the loan amount. Discount points buy down the interest rate. Points are paid upfront and affect the effective cost of borrowing.
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 5: Finance, Mortgages & Loan Types →