It really depends on how long you are planning to stay in your home and keep the same loan - you really need to work the numbers for your particular situation to see which would be better for you. If you are only planning on keeping the loan for the short term, you might be better off with a higher interest rate and higher monthly payments, as you still could save money in the long run over paying a point to the lender up front. On the other hand, if you were going to keep the same loan for a long period of time, it may be less expensive for you in the long run to pay the point now and get the lower rate. Look at the amortization schedules of each option which may help you decide - your lender should be able to provide those to you. Good luck with your purchase!
Coldwell Banker Residential Brokerage