Does it make send to pay more in costs upfront to get a lower mortage interest rate? It depends...

(Bloopers at the end)

Every lender offers a large matrix of rates, ranging from very low to very high. On the lower end, borrowers are charged fees - called discount rates or discount points - for those rates. On the higher end, the lender will credit money back to the borrower, usually used to pay for closing costs.

But does it make sense to pay these upfront costs in return for a lower rate (and a lower monthly payment)?

This video discusses in the detail the issues involved and will help you decide what's best for you.