Posted by thom on December 31, 1999 at 09:49:47:
Means that the seller will pay the lender points up front to reduce the interest rate, so you save on the long term. i.e. Interest rate is 8%, you pay the lender 2 points=$2,000 up front and buy the interest down to 7.75%. Only good if you plan to stay in the house long term, other wise take the discount off the price.