The purpose of discount points is:

While discount points require an upfront payment, they do not reduce the total amount due at closing; instead, they increase it. Borrowers pay for these points to lower their long-term interest rate, but this does not directly affect the closing costs, which remain based on other fees and expenses associated with the mortgage.

Locking in an interest rate is typically achieved through a rate lock agreement, not through the payment of discount points. A rate lock allows borrowers to secure a specific interest rate for a defined period, protecting them from rate fluctuations before closing, but it does not involve the payment of points.

Discount points are related to interest rates and do not have any direct impact on property value or tax assessments. Tax savings associated with mortgage interest deductions occur through the interest paid on the loan, not by altering the property's assessed value.