Refinance When refinancing your home, many of the same considerations apply. Programs without PMI often have a higher rate, with the advantage being that mortgage interest is tax deductible. In summary, the lower the LTV, the lower the risk to the lender. Thus the lender will look more favorably upon the transaction. LTV considerations will also differ in situations where the property is an investment property, and non-owner occupied.
Points are fees that are paid at the front of the loan to reduce the interest rate.
Because points are prepaid interest, you need to be sure you will keep the loan long enough to recoup these costs through lower monthly mortgage payments.