Whenever you get a mortgage, you should ask yourself the question: “points or no points?” A point is 1% of the loan amount, and it’s used to reduce your interest rate. I think about it like 2 kids at the park, playing on a see-saw. When one goes up, the other goes down. In mortgages, the trade-off is between RATES and FEES. The higher the rate, the lower the fees. The lower the rate, the higher the fees. Paying points reduces your interest rate and your monthly payment.