Should I Buy the Rate Down

[Danny Celestin]

BP Fam, thanks in advance for your help with this situation. I'm in escrow on a duplex, my credit score is high 750+, I'm a W2 employee, and I plan on keeping this duplex for more than 10 years. With all the speculations of rates going down in the future what is the best option in your opinion. At the lowest rate option I'll have just enough reserves. The reason I'm asking is because I made so many mistakes on my first property and I made them because I didn't ask enough questions. Just trying to avoid making the mistake this time around! Thanks again! 

1. Non QM, 8.125% interest rate, 2.625pts, 20% down payment, 12 month prepayment penalty period - 3.61% CoC

2. Conventional, 7.375%, 1.249pts, 25% DP, no prepayment penalty period - 6.45% CoC ($43K savings over 30yrs)

3. Conv., 6.999%, 1.694pts, 25% DP, no PPP - 7.2% CoC ($55k savings over 30yrs)

4. Conv., 6.625%, 2.176pts, 25% DP, no PPP - 7.9% CoC ($67K savings over 30yrs)

5. Conv., 6.125%, 3.204pts, 25% DP, no ppp - 8.72% CoC ($82K savings over 30yrs)