Interest rate points
Hello, my name is Jerry Santiago and I am active duty Air Force. I am a real estate investor in Rapid City, South Dakota. I am in the process of house hacking a new property (single family home) that it’s currently in foreclosure. The property needs about $10k in renovations to bring it back to standards. The property is $259k (3 bed, 2 bath) and the approximate monthly payment will be around $2400. With the interest rates increasing to almost 8%, is it worth buying down points to bring my monthly payments down to $2000? I would have to buy almost 2 points which is about $6500. I’m sure that after the renovations the property will most likely be $310k, compared to the property around. Thank you.