What are mortgage points? And is paying mortgage points worth it? A “point”— formally referred to as a “discount point”— costs the borrower one percent of the loan amount. Mortgage lenders typically refer to this as “buying down your rate.” For example, one point on a $500,000 loan is $5,000. The point is a fee typically paid at the beginning of the loan in most cases and it is up to you as to whether you opt to pay for discount points.Read More