A loan with one discount point means that the borrower ____________.
A.
pays an extra 1% of the loan at closing in return for a reduction in the interest rate on the loan.
B.
receives a discount of 1% on the interest rate on the loan.
C.
receives a discount of 1% on the loan principal.
D.
pays an extra 1% in interest over the life of the loans in return for a reduction in loan principal.