Some buyers pay points to buy down their rates. What you need to determine is if it's worth it or not.
Example, if your rate is 4% for a $500K loan w/ no points, and you pay 1 point= 1% is $5,000, how much lower will your rate be? 3.75 or 3.875???
That's the question to ask your mortage professional. The other question you need to ask yourself is how long you plan on keeping that property. Why pay an extra $5,000 upfront if the numbers don't work in your favor.
Best of luck.
Point for purchase money loans can be deducted on a b uyer's schedule A in the year incurred if (s)he itemizes. Points for refis have to be amortized over time.