Points is an upfront cash payment required by the lender as part of the charge for the loan, expressed as a percent of the loan amount; e. G., "3 points" means a charge equal to 3% of the loan balance. It is common today for lenders to offer a wide range of rate/point combinations, especially on fixed rate mortgages (FRMs), including combinations with negative points. On a negative point loan the lender contributes cash toward meeting closing costs. Positive and negative points are sometimes termed "discounts" and "premiums" respectively.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). points. Retrieved September 20, 2026, from http://smartdefine.org/points/definitions/1160713 |
| Chicago | Barry Goldsmith. 2010. "points" http://smartdefine.org/points/definitions/1160713 (accessed September 20, 2026). |
| Harvard | Barry Goldsmith 2010, points, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/points/definitions/1160713>. |
| MLA | Barry Goldsmith. "points" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/points/definitions/1160713> |