[quote=cooperthedog][quote=asianautica] Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]

True, but the opportunity cost of the few thousand also must be taken into account.

If your rate of return is higher from investing the buydown money, then you will “save” less over the life of the loan vs. investing it.

With rates at 5%, do you expect your investments to return more or less then that over the next 30 years? Another way to look at it is; would you be willing to invest in a 30 year bond at 5%, or would you be worried about future inflation or better returns from different asset classes?

I’m of the opinion that with fixed rates this low, I want to use as much of other peoples money as possible. [/quote]

Good point, specially if you suspect in the mid future inflation will be high.