### Question
What is the definition of bona fide discount points?


### Answer
The definition of **bona fide discount points** is as follows in *15 U.S.C. § 1602*:

> loan discount points which are knowingly paid by the consumer for the purpose of reducing, and which in fact result in a bona fide reduction of, the interest rate or time-price differential applicable to the mortgage

#### Citation:
  - *15 U.S.C. § 1602*
  - Heading: **CHAPTER 41-CONSUMER CREDIT PROTECTION > SUBCHAPTER I-CONSUMER CREDIT COST DISCLOSURE > Part A-General Provisions**

