Buying points, Cash out-of-pocket, and the BRRRR Method

[Aaron Breitbarth]

Should I buy points to lower my interest rate if I plan on using the BRRRR method?

[JD Martin]

Generally doesn't make sense unless you're talking about a slow-motion process of a few years. You can do the math and figure out how long it takes you to recapture the expense in your mortgage payment. Example: if you spent 1 point to buy down 1/4 percent interest on 100k at 5 percent, you save about 15 bucks a month on the mortgage but spend $1k to buy the point. $1000/$15 = 66 months to break-even. That's 5 1/2 years.