Some lenders require you to prepay a portion of the interest due on your mortgage as a condition of approving the loan. They set the amount due at one or more discount points, with each discount point equal to 1% of the mortgage loan principal. For instance, if you must pay one point on a $100,000 mortgage, you owe $1,000. From your perspective, th [..]

normally paid at closing and generally calculated to be equivalent to 1% of the total loan amount, discount points are paid to reduce the interest rate on a loan. In an ARM with an initial rate ...

Amount payable to the lending institution by the borrower or seller to decrease or "buy down" the mortgage note interest rate. One point is equal to one percent of the loan amount (1 point, [..]

An amount or fee a borrower pays to a lender which will help decrease the interest rate on a mortgage loan. One point is equal to one percent.

A percentage that the borrower pays at closing in order to get a lower interest rate, sometimes simply called a point. (usually between 0% - 3% or 0 to 3 points.)