• There are two types of points in mortgages: discount points and origination points.
  • Points of origin are the fees paid for assessing, processing and approving mortgage loans.
  • The more discount points paid, the lower the mortgage interest rate.
  • One point is usually equal to 1% of the mortgage amount.
  • Unlike some other mortgage fees, the opening points are tax-free.
  • Researching and asking questions may be subject to a fee because the number of points of origin may vary between lenders.