Cat - hopefully the following is helpful?? Buying a point means that you are paying 1% of your loan amount in exchange for a lower interest rate. I do loans (but not mortgages), and my understanding is that it is in your best interest to buy down as many points as your lender will allow. The $ spent on points is tax deductible. As an aside, I would also suggest looking around to see if there is a credit union that might be able to offer you the loan since the rates and quality of service are generally better than a bank's (of course I am biased on this based on where I work).
OT speaks the gospel truth with regards to the idea of getting your STBX out of your business sooner rather than later. I only wish I was in a position to do the same! Best of luck to you.
