 TITLE: How Do Mortgage Points Work? CONTENT: What Are Mortgage Points?\n-------------------------\nThere are two types of mortgage points:\n*   **Origination points** are part of the many fees you may pay a mortgage lender. This type of mortgage point doesn't affect you beyond being a cost associated with getting your loan. Understanding origination points may help you comparison shop lenders to find one with the lowest fee and negotiate the fee amount.\n*   **Discount points** are points you can buy to lower the interest rate on your mortgage. Discount points are a form of prepaid interest, so buying points when you first take out your loan can lower your monthly payment and overall cost of borrowing. Each discount point costs 1% of your loan amount.\nFor our purposes, let's focus on discount points. END