Welcome to this forum.
Points are also known as discount points. These are some kind of fees that the lenders charge at closing. If the borrower pays these points, he may be offered lower interest rates for the entire loan period.
Eugene has given you some very good information regarding points and I agree with him that the buyer should look the net amount that they need to pay. Points are some kinds of baits to attract the buyers.
There is an article regarding Discount points. You can check it out- http://www.mortgagefit.com/discount-point.html
Feel free to ask if you have any further questions.
Thanks,
Larry
