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Opt for lower interest rate + higher closing cost?

Hey everyone I currently have a mortgage at a 30 year fixed term at 4.125% with $281,272 left. I'm looking to refinance and I'm looking at 2 options:

  1. Loan amount of $290,147 at a 30 year fixed rate at 2.625% with closing costs of $3 (Much of the closing costs have already been rolled into the new loan balance). Total savings cost would be $23,931 at 10 years according to the Zillow refinance calculator.
  2. Loan amount of $288,633 at a 30 year fixed rate at 2.75% with no closing costs (Much of the closing costs have also already been rolled into the new balance). Total savings cost would be $22,368 at 10 years according to the Zillow refinance calculator.

Because of the cost savings at 10 years I'm leaning towards option 1 with the 30 year fixed rate term at 2.625%. I've heard from others that it's better to take a higher interest rate with $0 in closing costs but looking at the cost savings 10 years down the line it looks like I would come out ahead if I opted for the lower interest rate but higher closing costs. Wanted to get some input from everyone here thanks!

submitted by /u/basketballakev
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source https://www.reddit.com/r/RealEstate/comments/lu5syc/opt_for_lower_interest_rate_higher_closing_cost/
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