These points, which are offered by most lenders, cost 1 % of the mortgage's total amount and usually decrease the interest rate by 0.25 %. (valuepenguin.com)
This would decrease interest rates for further out on the yield curve as opposed to only the overnight rate. (wheredoesallmymoneygo.com)
For instance, it can decrease interest rate risk by holding both short - term and long - term bonds. (investopedia.com)