What's a 'point'?
Paying a point, also known as a discount point, buys the interest rate down on your loan. You give the mortgage lender or bank more money up front, to lower your interest rate. Note that it's not a "down payment"; a point is part of your loan. One point is one percent of your loan amount, not of your house price. For a $400,000 house with a $300,000 mortgage, one point is $3,000.