Points (discount points)
Prepaid interest that lowers your mortgage rate — one point equals 1% of the loan amount.
Why it matters
Buying points is an upfront payment that permanently lowers your rate. Whether points are worth it depends on how long you keep the loan: the longer you hold it, the more each point pays back. The break-even period is usually a few years.
See also
Educational only — not financial, tax, or legal advice.