confused with pointsI have been shopping around for rates.Lender 1. For jumbo loan giving 4.375 with 20% down and 4.25 with 25% down payment.Lender 2. started using lots of technical jargon what I understood he will give rate of 3.875 but i have pay a penalty of 1/8th point, which would be $780, while closing costs will be $3800. Totally confused how the rate is much lower and how come he is charging me a penaly. I tried to read on points by googling it. What I understood you get points if you don't give 20% down. you can ask for discount points though. Any clarification will be appreciated.May 21 2012 - US00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.