My wife and I were kicking this idea around and wanted to get some
outside input.

We're buying a home for about $140K. We are able to put 20% down so we
won't have to pay PMI, but I'd like to drop my monthy payment even
further. We have zero credit card debt now, and an excellent credit
score. We were thinking about borrowing enough on one of the credit
cards to put down $10K more on the house, and purchase 2 discount
points. Before this idea we were not planning on purchasing any
discount points (don't really have the money after the 20% down) We
have a credit card convenience check for 3.99% until the balance is
paid off. So its cheap money. Yes the interest won't be tax
deductible, but the interest portion is only $20 a month, so I'm not
concerned about that.

We'd pay off the credit card loan in 5 years - thats where my $20 a
month in interest figure came from, I'm not sure its completely
correct. 5 years is the break even point for the discount points, too.

So after the 5 year period the extra credit card portion of the house
payment would be gone and we would end up with a house payment that is
$230 less than without borrowing the credit card money. Thats almost a
25% reduction.

The downside is that if our payment is even 1 day late the interest
rate will probably jump up to 16% or something. I'll cross that bridge
if I get to it, but we don't plan on being late.

So is this crazy or what? Thanks in advance for your input.