what can I use points towards - also i'm not exactly sure what a mortgage point is

You can't use points per say, you may be charged points. Points are a percentage of your loan amount charged to you either as a fee or bona fide discount. The fee would go directly to the lender or broker, bona fide discount points buy down your rate.

You don't want point charged. Its an expense to you. Our bank does not charge points. In fact, our branch guarantees the lowest price mortgage. We're able to offer this incentive as a direct lender. apply only: www.imortgagelending.com

You can use points to pay closing costs, escrow reserves , pre paids and upfront mortgage insurance premiums (although be careful of the last). The point shave to be completely covered by the points or not at all.

A "Point" is 1% of the loan amount or sale price.. Example: $100K home x 1%= $1000. typically, a lender will give you 1 to 3 points to aide in your closing costs.. These funds can be used for anything associated with the sale except down payment.. title costs, impounds, appraisal costs, etc.. can all be paid by these points.. I think the other responses here are not dealing directly with your question.. I think what they are referring to has to do with you PAYING points to lower your interest rate.. and they are correct.. the only advantage to paying points to lower your interest rate is when you have more seller/lender credits (points) than what's necessary for your loan.. if you have excess, and you don't use it, you will lose it, so you use those excess funds to buy down the rate..I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com