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Define Point in Real Estate

Point: 

In real estate, a point refers to a percentage of a loan amount that a lender charges as a finance fee. One point is typically equal to one percent of the loan amount.

Example: 

Let's say that a homebuyer is borrowing $200,000 to purchase a home, and the lender charges one point as a finance fee. That means that the buyer would need to pay an additional $2,000 upfront as part of the loan closing costs.

"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"

A point is a fee, small but true,
One percent of loan charged to you.
Paid upfront at closing time,
A lender's finance charge in its prime.