The interest rate can make or break the affordability of a mortgage. One way to get a lower rate and save money on your loan is by paying for mortgage points.

Points are fees paid upfront to the lender for the loan, expressed as a percent of the loan amount.  Each mortgage point costs 1% of the loan amount and can reduce your interest rate anywhere from one-eighth (0.125%) to a quarter (0.25%) of a point, which results in a lower monthly mortgage payment and a less expensive loan overall.