This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. This episode covers content for the National Real Estate Exam.

In this episode you will learn:

• The definition of discount points as prepaid interest to lower mortgage rates.

• How to correctly calculate points using the loan amount instead of the purchase price.

• The relationship between discount points and the lender's overall yield.

• How to distinguish between discount points and loan origination fees for exam questions.

• The rule of thumb for how many points are required to move an interest rate by one percent.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep