A point is one percent of your loan amount, paid up front to buy your rate below that day's zero-point "par" rate. You can pay points in fractions (a quarter point, three quarters of a point). As an illustration only, one point might move you from a 5% par rate down to something like 4.75%. The trade runs the other way too: accept a rate above par and the lender pays you a credit toward closing costs, so you bring less cash to the table. Beyond points, the durable levers for a lower rate are: - Refinance later when the market offers a better par rate. The 30-year fixed gives you that option, though nobody can promise rates fall or when. - Improve your credit profile so you qualify for better pricing tiers. Our lean: we're biased against paying points. The zero-point rate is the honest baseline, and the break-even on points often doesn't survive a realistic timeline, especially if you end up refinancing. Points can still be right for a specific reason, and the comparison is something some people want to see. We'll run it for you. The right structure depends on how long you'll keep the loan, whether costs get financed, and what the term does. That's exactly what we map out in the free Roadmap conversation (about 20 minutes), points versus credit, side by side, on your real numbers.