Puts you in a stronger position when you are negotiating with the seller, because the seller knows that your loan is already approved. Helps you close quickly, since your loan is already approved. If you plan to sell the house in a few years you may want to consider an adjustable or balloon loan. On the other hand if you plan to keep the house for a longer time you may want to look at fixed loans. Understand the relationship between rates and points.
Points are consider to be prepaid interest and are tax deductible.
Each point is equal to one percent of the loan. The more points you pay, the lower the rate you will get. Compare different programs. Shopping for a loan can be difficult. With so many programs to chose from, each of which have different rates, points and fees, its hard to figure out which program is best for you.