Mortgage points may help homebuyers lower monthly costs amid high interest rates. How to know if this strategy is right for you

"This fabulous apartment just had a price reduction, which means you can use those savings to buy down your rate," Grubbs wrote in the updated ad.

Being able to lower that monthly payment can really help give some more wiggle room in people's budgets and help them reach affordability.Mortgage points refer to the percentage amount of the loan. Typically, one point is worth 1% of the loan value, according to Nicole Bachaud, senior economist at Zillow.

In addition to higher upfront costs, home buyers should also weigh other factors before buying mortgage points."For most instances, it is definitely a considerable cost savings to be able to buy down on points," said Kamila Elliott, a certified financial planner and co-founder and CEO of, a boutique advisory firm in Atlanta. Elliott is also a member of the CNBC Financial Advisor Council.

If that extra money is enough to bring your down payment to 20% of the home purchase price, that would eliminate the need for private mortgage insurance, which adds to monthly costs for mortgage borrowers who put down less than those sums.

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