Fixed vs ARM for rental property

[Ramki D.]

My lender is offering 4% rate for 30 years fixed and with half point (1300$) 3.875% for 30 yrs fixed. Is it a good idea to pay half point (break even in 69 months)? Or go with 4% and refi at lower rate later. If I refi after an year, will I get a better rate with no cost no fee ? Any suggestions. Thanks in advance

[Stephen J Davis]

I personally never pay to lower my interest rate. This keeps my total out of pocket as low as possible. 4% is so cheap anyway.