New REI - Buy Points or not?

[Chris Kim]

Hi BP members,

I'm looking for advice whether or not I should buy points from my lender. I have an option to refinance at 3.875% at 0 costs or I could save $189 at 3.125% at $12.5K cost. It would take 5.5 years to make the money back. From what I can tell, most people do not buy points but I'm wondering if it makes sense to buy it in this case. Rates are at historic low and I can't imagine the rate would go below 3%. However, I'm new to investing and would love to get the opinions for those who've done this much longer than me.

Thank you!