This little gem popped into my inbox last week, and it's pretty interesting. Even as ads and the media trumpet "new interest rate lows", banks are raising fees to make up what they aren't able to make in interest.
When you speak to a mortgage professional, be sure to get the rate quote with points and without. If you pay no points, your mortgage payment will be higher. Depending on how much principal you borrow, the difference could be less than $20/month.
On the other hand, if your ratios are very close to maxed out (ie, debt close to 40% of gross monthly income), then paying points up front will reduce your monthly obligation and allow you to qualify for a mortgage that you might not otherwise.
Ask questions. Make sure you understand how many points you will pay up front in order to get that amazing low interest rate.