Trading Mortgage Points for Cash Credit

[Chris Cantrell]

Hello,

I am selecting my financing for my first duplex. Currently my best option is 4.5% with all lender closing costs waived (due to my company relocation package).

Here is the question. If I go with 4.625% I can get a credit of $1100 and 4.75% will get me a $2400 credit. I am looking to purchase another property in the near future and have some other business ideas so cash in hand could be valuable in the future. Going from 4.5% > 4.75% increases the monthly payment by ~$20

What decision would you make?