True or False: Loan fees, also known as "points," are usually a percentage of the loan principal amount.

Loan fees, commonly referred to as "points," are indeed typically calculated as a percentage of the loan principal amount. This means that if a borrower takes out a loan, the fee can be expressed as a certain percentage of the total amount being borrowed. For instance, one point usually equals one percent of the loan amount.

This method of calculating points is standard in the lending industry as it provides a straightforward way for lenders to structure their fees relative to the size of the loan. Since points are a common practice used to cover origination costs or to effectively lower the interest rate through upfront payment, understanding how they are calculated as a percentage helps borrowers gauge the overall cost of financing.

Thus, the assertion that loan fees or points are usually a percentage of the loan principal amount is accurate.