I'm looking to refinance. I found out from a local bank this morning that for a 30-yr. fixed rate mortgage, I can get a rate of 5.375% with 0.875 discount points. I assume that I have excellent credit. Would I be able to buy an additional 1.125 points, for example, to get the rate down to 4.25%? I know that 1 point = 1% of the loan amount. Thanks.

Doubtful.

Each lender will have a scale of points. Typically, the more points you buy, the lower return on investment you get.

Meaning... the first point might get you half a percent, but the second might only get you a quarter. They will also cap the amount you can buy (or everyone would pay 6 points up front and take a 0% loan)