Hi Mustache Community,

Would love your help. I need to make a choice on a loan by tomorrow and am curious to get some input from a community I respect and appreciate (that's you).

Basically, I can either get a credit or pay for a lower interest rate. I know on MMM we think long term and get the lower interest rate, however it would take me 9.3 years to zero out of the benefits of the higher interest. This is for an income property (three units) so I expect to keep this property for longer than 9 years...but I don't know if that's a gaurantee. I'm in my 20s, so a lot could change for me in 10 years.

Any wisdom here? My instinct is to suck it up and pay the point, keep my eye on the long haul, but I'd love to hear others' ideas.

Thanks in advance!

Here's my options:

4.625% 1.156% lender credit, or $5098 payment= $2267

4.500% .322% lender credit, or $1420 payment= $2234

4.375% .669 points, or $2950 (cost) payment= $2202

4.250% 1.344 points, or $5927 (cost) payment= $2169

Difference between the 4.25 and 4.65% = 11,025

Time to zero out: 9.375 years

Saved to complete 21 year mortgage: $24,696

(Alternately: 11,025 invested with 4% return=17,959 in 10 years)

Total loan amounts:

A Total: 811,022

B Total: 802,820

C Total: 795,670

D Total: 786,767