Mortgage points refers to the fees paid (as a percentage of the loan amount) by the borrower, including both origination and discount points. Origination points represents the fees lenders charge for processing the loan. For example a borrower may be charged a one point (one point equals one percent) origination fee, so a $400,000 loan might require a $4,000 processing fee. The borrower could then opt to buy down the rate by paying an extra point (or two). Generally, for every point paid (one percent), the loan rate is reduced .25%.