Finance closing costs or pay up front

[Alex Waite]

What does the BP community think of paying closing costs up front or should you finance the costs?

I am currently looking at refinancing my FHA to conventional after one year but financing my refi closing costs will put my balance higher than what I bought the property for!! Am I insane to do this?

[Dave Spooner]

@Alex Waite as a general rule of thumb, money now is worth more than money later. Unless it represents significant long term savings or the cash flow management will be challenging, I’d advise financing the costs, especially on a mortgage with such low interest.