Upfront points usually 'buydown' the interest rate on your fixed or start rate. These are tax deductible on a home purchase.
As Andrews said, Fannie Mae/Freddie Mac both have a mandatory loan level adjustment on condos with a LTV equal to or under 75% of 0.75 point. If you don't pay for it in upfront dollars at closing the additional cost is folded into your rate (0.25 to 0.50 higher interest rate).
If this condo is not a 2-4 family or conversion, I have a great program which allows you to finance 85% (CLTV) of the purchase price by obtaining a first mortgage of 75% and a 2nd mortgage (Home Equity Line) of 10% of the purchase price. By doing this you won't have to pay points on a condo purchase with an LTV over or equal to 75. Your credit must be excellent (FICO score 720 or above, no exceptions).
If you bought the condo at auction, my guess is the condo it will appraise high enough to get a loan, since it is likely your accepted offer is at market value or below.
Also, can someone discuss the pros and cons to a 30 year mortgage vs. a 20-20 mortgage?
Good luck & let us know how you make out,