If you are applying for a mortgage loan, it is important to understand the meaning of the term “points”. In the mortgage industry, points has multiple meanings. The loan origination fees charged by the lender to make the loan is referred to as points. Additionally, the fees charged in order to lower your interest rate is called points (discount points). Even though interest rates are at historic lows, why not explore the benefit of buying down the mortgage rate even further? In this Smartmoney.com article you will find a “Points for Mortgage Rate Calculator” which will give you a better idea if buying down your mortgage rate makes sense for you. Read more.