Points on an investment loan??

[Armani Diaz]

So I’m acquiring a duplex and my lender gave me a 4.125% and is trying to charge me 1.582% in points. I also own other properties so they are saying this is normal once you are reaching loan capacity. Is this normal to pay points on an investment loan even though I have 750+ credit score and good income? Any insight would be wonderful

[Dan Schwartz]

@Armani Diaz Points or a higher rate.  Pick your poison.  The fact that it's a multifamily already adds a point vs. it being a single family home.  The fact that it is an investment adds a few points vs it being owner-occupied.  Most lenders roll that particular hit into the higher rate investors expect to pay.  

You don't have to become an underwriter, but as an investor it doesn't hurt to have some sense of how Fannie Mae prices loans.  This is a good starting point to see what factors increase the cost of your money: https://singlefamily.fanniemae...