Definition: A percentage of the loan amount. If you borrow $100,000, one point is equal to $1000 (or 1% of $100,000). You may pay points up front to "buy down" your interest rate and make your monthly payments for smaller.
Get all the details -- find out the pros and cons of paying points.
Also Known As: Discount Points
Examples:
I paid 2 points when I got my mortgage.
