It is a fee or credit that is added to or subtracted from your closing costs. How points and rebates work Points buy down your interest rate and increase your closing costs.
Rebates do the opposite.
Your pay almost nothing in closing costs if you opt for rebate points. Use discount points to control the cost of your mortgage. Points and taxes Points are tax deductible. Inc. An Equal Housing Lender. CitiMortgage is a registered Service Mark of Citicorp.