PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
A discount point is prepaid interest paid to a lender at closing, commonly to reduce the loan's interest rate.
Financing
Mortgage finance
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Discount point mean?
A discount point is prepaid interest paid to a lender at closing, commonly to reduce the loan's interest rate. One point equals 1 percent of the loan amount.
How do you separate the nearest exam answer?
Discount points affect the interest-rate bargain. A loan origination fee compensates the lender for making or processing the loan, even if both are quoted as points.
What changes or stays the same in Georgia?
The national formula applies in Georgia: points are calculated from the loan, never from the sales price.
Two discount points on a $240,000 loan cost $240,000 × 0.02 = $4,800.
Using the purchase price instead of the loan amount is the standard wrong-answer path.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
A buyer purchases a $300,000 home with a $240,000 loan. The lender charges a 1 percent origination fee and 2 discount points. What do the discount points cost?
- A
$6,000
- B
$4,800
- C
$7,200
- D
$9,000
One point equals 1 percent of the loan, so 2 points on $240,000 is $240,000 times 0.02, or $4,800. The $6,000 answer uses the purchase price instead of the loan. The $7,200 answer adds the origination fee, which is a separate charge for making the loan.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Financing complete lesson
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