Points or no points scenario

[Allana Alex]

Good day BP

Curious as to your opinion on the concept of buying points and whether it makes sense.

3 family property Mortgage 600k will be House hacking.   I can buy points to reduce interest rate.  A .25 reduction equals 1% of the purchase price ($6,000). The 2 Rental units will generate approximately $2,900.  Bank will give interest rate of 3.75%.  Do you suggest buying points down to .75%.  It is my intention to keep the property for the life of the loan.  .75% interest rate may allow me to walk away every month paying nothIng out of my pocket and walking away with at least $100 profit.  If i don't buy points I come out of my pocket a few hundred dollars a month.  Maybe about $800

Mathematically I know it makes sense just wondering if tying up almost 75k for the sake of purchasing points is being a little too ambitious.

[Allana Alex]

Okay thank you for the feedback.  In trying to save money in the long term (life of the loan). I see that it could actually be costing me (opportunity cost).  I suppose the idea of spending money to save isnt smart if in the end you are making money overall, with the money that you didn't spend. 

I've always been taught to save, save, save and always look for a deal.  In real estate investing I see that I have to change my traditional ways of thinking and realize cash in hand today is many times more meaningful than future savings.