Mortgage Broker Or Lender, Lisle, IL
In addition to what was said already, points can be used as a write-off HOWEVER, you need to check with your accountant to see what the current tax laws allow. For instance, when I purchased my home, I was able to write off the entire amount of the points I would have paid in the year I purchased my home, thus making the actual cost much lower (we love tax deductions, right?) however on a refinance, those same points were NOT wrote off entire in that tax year, instead they were to be spread out through the term of my loan, thus negating the benefit of paying points on refinances.
I tell my clients, "listen, if you think rates will never ever get lower and you plan to stay in this home at least X months (the breakeven period I previously discussed with them), then maybe paying these additional fees (points) will be worth it but if you have any doubt about your future plans, it may be better to not pay the points and put it in another investment vehicle that'll yield a higher return instead". Since I'm not a licensed financial advisor,I can't tell them where to put their funds but it's a conversation I have with my clients to get them thinking about how to best maximize their earning/savings potential.