Buying Discount Points

[Bhanu Kuna]

Hi Everyone,

I'm in the process of executing my first BRRRR. I'm obtaining financing for the property and will then do a cash out refinance.

Should I be buying Discount Points on the first loan? To keep overall costs down it seems like something I should only buy when I refi.

Thanks,

Bhanu

[Whitney Hutten]

@Bhanu Kuna I certainly wouldn't pay points on the short term loan.  You may choose to do so on the refinance.  Oftentimes, the opportunity cost of paying that money upfront doesn't make sense though.