Most people need a mortgage to buy their home, and generally paying points is part of that process. A point is one percent of the mortgage. It's an upfront fee versus a not-points mortgage that might be a higher rate of return, but the institutions get an immediate cash infusion for that mortgage.
Some financial experts advise against paying points.
The money they would be saving on the points could be invested in any investment strategy they want, and over the course of the life of the mortgage the money they would be paying in points would probably outperform the amount of savings they are getting on their mortgage. Money Wise reports are updated every Friday morning. WRBL is a Television Station.