[maraya]

...converting lenders' fees to points when refinancing a mortgage?

[T J]

Advantage: Less cash to have up front at closing- a good thing to some and depending on the situation might be feasible. Disadvantage: You are paying interest on an amount that really isn't part of the loan and while many can't come up with 'extra' cash, seems silly to borrow lenders fees and THEN pay interest on top of it. Try to find the cash and don't put them/roll them into the loan.