 TITLE: Should I Buy Mortgage Points? CONTENT: How Do Mortgage Points Work?\n----------------------------\nMortgage points work differently depending on the type of mortgage point you're talking about:\n*   **Origination points** may be one of the closing costs you pay your mortgage lender. The points are a one-time fee, which is often based on a percentage of the total loan amount. You can try to negotiate origination points and compare lenders, as some may offer a loan with fewer (or no) origination points.\n*   **Discount points** are mortgage points that you purchase to get a lower interest rate on your loan. Each point costs 1% of the loan amount, and you pay the fee with your closing costs. Buying points can save you money overall because your monthly payment and interest costs will decrease.\nAs we go over mortgage points below, we'll be specifically addressing discount points. Origination points can be much easier to compare and understand—figuring out when to purchase discount points isn't as straightforward. END