Closing cost credit or lower interest rate

[Jeremy Taggart]

Hi BP,

So I am planning on house hacking a triplex for my first buy and hold investment property. I am using an FHA loan and the mortgage amount is going to end up somewhere around 120k. My lender is giving me the choice between a higher interest rate with a closing cost credit of around $600 or a lower interest rate with no closing cost credit.

Option 1 is a 3.625% interest rate over 30 years  which would make my monthly payment around $921 and my closing costs would be $4,276 since they would be giving me a credit for the higher interest rate.

Option 2 is 3.5% interest rate with a monthly payment of around $913 and closing costs of $4,876 without the credit.

My question is which route should I go? The break even point to make up that $600 credit with the money saved from the lower monthly payment would be around 6 years. If I am planning on owning the house for longer than 6 years would it make sense to take the lower interest rate?