What are mortgage points, and should you pay them? Discount points. These are actually prepaid interest on the mortgage loan. ... Origination points. This is charged by the lender to cover the costs of making the loan. ... By the numbers .... A lender might offer you a 30-year fixed mortgage of $165,000 at 6 percent interest with no points. ...How many points are in a mortgage loan?
What Mortgage Points Are. Mortgage points come in two varieties: origination points and discount points. In both cases, each point is typically equal to 1% of the total amount mortgaged. On a $300,000 home loan, for example, one point is equal to $3,000.