Should you pay extra for points? Should you secure a lower interest rate on your mortgage, you can expect to pay a certain percentage to the lender in the form of points. Points or origination fees are what lenders charge in interest to reduce the rate of the loan. It can be paid upfront or built into the cost of the mortgage. One point is equal to 1% of the mortgage amount (e.g., one point on a $250,000 loan equates to $2,500) which goes to the lender at closing.