What is the common term used for one point, relative to loan origination fees?

The correct answer is one percent of the loan amount. In the context of real estate and mortgage financing, a "point" typically refers to a fee that is equal to one percent of the total loan amount. This fee is often charged as part of the closing costs when securing a mortgage. For example, if a borrower takes out a loan of $200,000, one point would be equivalent to $2,000.

Points can be used to lower the interest rate on a loan (discount points) or may simply be a method of charging fees (origination points). Understanding that a point equals one percent helps in grasping the total cost of borrowing and its implications for monthly payments and overall financing costs.