Points are a percentage of the loan amount. If you are borrowing $85,000 one point would be $850. Points are used to pay the origination fee to a lender and or pay to reduce the rate. If they are offering you 4.75% note rate, you may be able to pay points and obtain 4.50% note (these rates are for illustration only).
As a lender, if you came to me I would consider what your benefit might be against the cost of refinancing and look at no more than a 15 year term unless you were consolidating debt. If you receive enough benefit to pay back the potential costs within a year or two, it might make sense.
Get a hold of a couple local lenders and discuss what the total fees might be as well as the rate. Rates can always be offset by higher or lower fees.
I hope this was helpful.