Using the Rule of Thumb Used by Lenders (Each Point

Multiple Choice

Using the rule of thumb used by lenders (each point charged raises the yield by 1/8 of 1%) , 4 discount points raise the effective yield of a typical home loan by

A) 1/32 of 1%.
B) 2/8 of 1%.
C) 1/4of 1%.
D) 1/2 of 1%.