Answer:
A loan discount point reduces the interest rate that is paid on a home loan. One point reduces the interest rate by 1/8 of a percent, which reduces the amount of the monthly payment.
Step-by-step explanation:
The meaning that loan discount points have is the fact that they are fees that are used to buy down rates.
The effect that the loan discount point has on home loan is the fact that it helps to lower loans by about 0.25 percent.
The points helps you on your home loan by giving you a lower interest rate which then means that you have to pay lower over time.
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