What do they mean when referring to With and Without points?

Points are 1% of the loan amount. Loan officers can be compensated 1 of 2 ways. They can either
charge points or be paid directly by the lender. That’s why some LO’s will
charge points.

Also, you can buy points to buy down the rate. It does not work, as 1-to-1 option. You cannot pay
1 point and lower your rate by 1%. Usually, not always, if you pay 1 point, you
can buy the rate down about .25%.

You can also by fractions of points; it does not need to be the 1%, 2% or 3%.

If you are buying a home, and are receiving seller help, you may be able to use that to points
and buy down the rate.

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