"Points" are pre-paid interest. Usually to get a lower interest rate. To be deductible as "points", the amount must be a percentage of the loan, and can't be charged for any other service provide by the bank. An "application fee" or "loan origination" fee might be points if it is a percentage of the loan amount. (A flat $500 application fee is not points, but a loan origination fee that was 1% of the amount borrowed might be points. Similarly, any fees marked as being for the bank attorney, survey, inspection, appraisal or any other item is not points.)
