Financing mortgage points if we plan to refi soon?

Maybe someone can help me here. We’re lining up financing for a home purchase, and for various reasons, we expect to refinance sometime in the next 1-2 years.

Because things are so crazy in the mortgage market right now, we can’t find a loan with less than 1.75 points. Which is making me crazy, because if we do refi soon, we’ve basically thrown away the money that we’re paying on the points.

I’m trying to get creative. What if we financed those points into the loan? We would have to put more money into the downpayment in order to finance the points (basically, the same amount of cash that we would have paid on the points). But, couldn’t we get that downpayment cash back out when we refi? As opposed to the points, which will have basically gone down the drain.

Is this logical? What am I missing?
And no, because of some complexities of our situation, we are absolutely unable to find a loan with fewer points. So that’s not an option. We’re stuck.

Register New Account
Reset Password