True or False: Points paid by the seller or builder are excluded from the Finance Charge calculation.

The statement is true because points paid by the seller or builder indeed do not count as part of the finance charge. Under Regulation Z, which implements the Truth in Lending Act, certain fees and costs can be excluded from the finance charge calculation to provide a clearer picture of the true cost of borrowing. Points, or discount points, can be seen as up-front payments to reduce the interest rate on a mortgage, and when these are paid by parties other than the borrower—such as the seller or builder—they do not increase the cost of borrowing for the buyer. This exclusion is significant as it helps in accurately reflecting the cost of financing on the borrower’s loan disclosure. Other options may imply conditions or limitations concerning new homes or first-time buyers, which do not apply in this context since the key factor is who pays the points.