And what is this thing called a point?
A point is a prepaid fee your lender will charge you for the pleasure of spending his money and is assessed at 1% of the amount of your loan. If you are paying two points on a $200,000 loan, your cost is $4,000 in points.
To assure you are not paying more than you should, it takes about 5 years to catch up with the points paid up front before you begin saving money from the lowered interest rate.