Countrywide Sucks

Maybe I don't get. I certainly don't understand the scenario of what points are. I assure you I plan to spend many minutes today online trying to become versed in what a point is! We get stuff weekly from Countrywide telling us to call about refinancing. Right now they are advertising a little over 5% interest rate. This seems considerable lower than our rate (at least two me). Things have changed for us over the last three years. My credit rating has increased by 70 points and Jordan's by about 150. He also has documented income. I picked up the phone and called. The rep told me that we are in a product that would be offered to folks with perfect credit. How is that so? My interest rate is not anywhere near the lowest rate you offer on your website. Is this bate and switch? I was told that rate was available if you bought down two points. What's a freaking point? I just think he didn't want to deal with me because I didn't want to take out equity and I wanted the no closing cost product.

Can anyone explain the mortgage point system to me?