not pay all or some of your closing costs. in general, a no cost loan is the better strategy if you plan to keep your loan for the next year or two. longer than that, you may want to consider paying the costs yourself to get a lower rate since over time the lower interest rate will save you more money. and if you plan to keep the loan for four to five years, it often makes sense to pay closing costs and points to get an even lower interest rate.
points the simple way to understand points is this; points (one point is equal to 1% of your loan amount) 