Financing, 9% of the examination
Discount points
Upfront loan charges expressed as a percentage of the loan amount, with one point equal to 1% of principal.
Points can affect the lender's yield and the borrower's effective cost. Calculate them from the loan amount, not the purchase price. Whether a point is paid by the borrower, seller, or another party is a separate contract and disclosure question.
Primary sources
Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.