Seller's Points are lump sum payments (or finance charges) made by the seller to the buyer's lender to reduce the cost of the loan to the buyer. One point is equal to 1% of the loan amount. The payment can either be required by the lender or volunteered by the seller. Typically, this situation takes place when the seller is in a rush to sell the property or has had issues finding a buyer. These costs are non-recurring closing costs that are also tax breaks for the buyers.