Points represent a percentage of your loan amount (1 point = 1%). You might choose to pay points at closing in exchange for a lower interest rate on the loan.
In other words, by pre-paying some interest, you are “buying down” your rate. Conversely, you might choose to receive a credit (or rebate) at closing to help cover other costs and fees. This would correspond to a higher interest rate on the loan.
If you have questions or concerns about points, please contact your Mortgage Loan Originator at the number they provided, or call (844) 763-4466.