Rashida paid extra money to reduce her mortgage interest rate. That extra money is called:
Understand the Problem
The question is asking what term is used to describe extra money paid by Rashida to reduce the interest rate on her mortgage. This involves terminology related to finance and real estate.
Answer
Points
The extra money Rashida paid is called 'points'.
Answer for screen readers
The extra money Rashida paid is called 'points'.
More Information
Paying points is a common practice to reduce long-term interest costs on a mortgage.
Tips
Be sure to distinguish between points and other mortgage-related terms like escrow or PMI.
Sources
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