Question. If a rate is 2.75 with .761 points and a buyer buys 1 full point, will they reduce the rate a little to account for the .239 difference? So, the 2.75 rate could end up like 2.69? Or will they only allow the partial .761 point?
Discount points, or their percentage reflect the cost to obtain whichever rate you are being offered.
Using your example let's assume a hypothetical $100,000 loan amount. .761 points = $761 to obtain the rate of 2.75%. Conversely, you might see the rate of 3.00% at par value meaning no points being charged or even a lender credit issued of .761 points to accept a higher rate of 3.25% where you the consumer can take that $761 and reduce your closing costs.