The second trust usually has a life of 5 to 15 years. The interest rate is usually much higher than a first mortgage. The interest rate on a second trust is higher because the lender is taking greater risk. If the buyer defaults on the first mortgage, then the lender will typically foreclose and sell the property at an amount sufficient to cover the first mortgage. Thus, the lender of the second trust gets nothing.
More points result in a lower interest rate.
When paying points, you should determine how long it will take to get the points money back through lower interest rates. Thus, if you sell the home before 33 months have transpired, then you wasted money in points. Paying points makes sense if you're going to be in the house for many years. Do you have enough money to cover your mortgage and other expenses for at least 3 months. If you do not have sufficient cash to cover expenses for at least 3 months, then delay buying the home until you have saved more money.