looking for refi advice

[James Runkle]

Here is my options from lender posted below. I plan to keep this home, and won't consider moving out in less than 2 years. Should I buy down the rate? Right now I have been offered 4.00 rate with $1683 in costs. Property value is 325000,  loan balance is 162000 and adjusting upwards over the last several months. now at 4.99 and moving upward being tied to the treasury index. Thanks in advance for any input.

EMAIL FROM LENDER:

If you are set on the lowest rate possible it does come with a higher cost. For 3.5% interest it comes with another $4,000 or

3.75% at $1300 more in cost or

3.875% at $700 more in cost.