Rate of 7.5% with 2.5 points by me and 2 by the seller is this normal

[Nathan Hill]

Afternoon All,
Im going for my first investment property a Duplex <100k .

I have 25% to put down 

a great debt to income ratio 

A credit score >640 

I've just been applied for a mortgage and been told its 7.5% with 4 points associated with it. That means 2.5 to me and 2 to the seller.

Is this normal?  Is this fair ?

Thanks
Nathan

[Alex Bekeza]

Such small loans tend to get beat up on % based fees so that the lenders can maintain a minimum yield.  It takes the same amount of physical work for a lender to get a $75k loan funded as a $750,000 loan funded so they try to make sure it's worth the time and energy.  7.5% is a great rate as of today 7/12/23 but I wouldn't spend so much money in buy down if you can debt cover today without it because that buy down likely takes years to recoup and you'll probably want to refinance before hitting that breakeven period.