Refinance - Points or no points?

[Brian Dalton]

Good evening all, looking for some advice on whether or not to take points on a refi. Here are the details:

Condo in JC, 72% LTV

Refi amount- $178k

Current rate - 5.375%

Rates - 4% (no points); 3.625% (w/points)

Points - 1.5% ($2670)

Background - condo was bought in 2005, refinanced in 2010, looking to refi again, brings in a slight loss for the year based on the rent we're currently charging. When we raise the rent, we expect to turn a slight profit. 

It doesn't make sense for me to take pay the points and take the lower rate. Thoughts?

Thanks