1.2M 30-yr fixed mortgage. Should I go with option 1 or option 2?

Option 1: Rate - 2.5% with $1,500 credit

Option 2: Rate - 2.375% but I pay $4,500 in points.

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How many years are you staying and what is the timeframw of lower rate to pay the points ? And where did you get this rate ?

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I mean I say I plan for this to be my first and last primary residence. Points due at closing. Rate is from Wells

Do the math of when does 6000 = (amount saved per month at 2.375) * x where x equals number of months you have to stay for the points to be worth it.

If you want to make it even MORE fun, start factoring in your possible investment returns on the 6k

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If its a purchase then pay the points if you can because you can deduct that from your taxes. If its a refi I wouldn’t bother.

Can you explain this more please?

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