Final answer:
A "point" refers to a percentage of the total loan amount that you pay upfront to the lender at closing, in exchange for a lower interest rate on your mortgage.
Step-by-step explanation:
When it comes to closing costs on a home, a "point" refers to a percentage of the total loan amount. It is a fee that you pay upfront to the lender at closing in exchange for a lower interest rate on your mortgage. One point is equal to 1% of the loan amount. For example, if you are borrowing $200,000, one point would be $2,000.