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What are points?

I know very little about the process of buying a home or mortgages.  I'm am exploring the internet now to learn a little more about it before I go to a banker&a real estate agent.  I keep seeing something to do with the mortgages called, "points".  Some of them come with points & others don't.  What are points?
  • January 01 2009 - Rohnert Park
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Answers (3)

you will get lower interest rate if you paid point fee+buy down interest rate, and got higher interest rate otherwise
  • January 02 2009
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That is the point fee, and another one is buy down interest rate points, usually from .25% to 2.% of the mortgage .
  • January 02 2009
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1% of the purchase price.
  • January 02 2009
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