Points A point is equal to 1% of the loan. Points are comprised of the origination point and discount point(s). Origination point—a fee collected by the lender for obtaining your loan. On all loans, this cannot exceed 1% of the base loan amount. Discount point(s)—a one-time charge paid to reduce the interest rate on your loan. The lower you want your interest rate, the higher the discount points will be. However, depending on market conditions, a loan may or may not have discount points. They are set by the lender—the higher the interest rate, the fewer points.