You have to calculate what percentage 2000 is of the principle 18000 the answer is 1111. The difference between the value of the property and the amount of the outstanding mortgage balance is BEST described as which of the following. Mortgage Origination And Discount Points Understanding The Basics Tax Benefits And Guidelines For Mortgage Points Sh Mortgage Mortgage Loans Mortgage Lenders The Early-2017 Guide to Buying a Home March 10 2017. . This is also called buying down the rate Essentially you pay some interest up front in exchange. Some lenders may offer loans with fractional discount points. Discount points also known as mortgage points are a one-time fee the borrower pays the lender in order to reduce the interest rate on. Additionally you also have the choice to pay mortgage discount points which are a form of prepaid interest paid at closing in exchange for a lower interest rate and cheaper monthly payments. The