Cash out refi with 75%LTV no points or 80% LTV w/ 1.25 points?

[Pablo Flores]

What do you guys think. Have a bank that can do a cash out refi with no points at 4.875% 5/1 ARM 75% LTV and another bank that can do 4.875% 5/1 ARM at 80% LTV but with 1.25 in points? Value of the home is approximately 800k. I'll be able to pull out 40k more with the 80%LTV but $8k of that will go to pay points. Thoughts???