Loan points: applied to total purchase price or just loan amount?

[Eric Bette]

Hi Everyone-

I'm working on securing financing for a deal set to close on 2/1. It's an $80K deal, and I'm moving forward with conventional financing with 20%, for a total loan amount of $64K. I've decided to buy down the rate for 1 point, as discussed with my loan officer. 

The loan package came across from the bank today, and the pre-paid interest is listed at $800, whereas my understanding is that the point should be only charged on the mortgage balance/loan amount of $64K (for a $640 total). 

Was my understanding incorrect of was there a mistake on the bank's part? 

Thanks all.

Eric