Closing costs question , more than 5%

[Anthony Kono]

Thank you all for a wealth of information on here.  My question comes in regards to the closing costs. Everywhere I read it’s from 2-5%, but my lender , 30 yr conventional , investment property , has closing costs out of pocket $17k for 235k property. $9k total loan costs and $8 other costs. When the average range of 2-5% is mentioned is that only for total loan costs ?
Thank you in advance

[Jay Hurst]

Quote from @Nina Erlandson:

So about 2% in origination fees. Because of the increasing interest rates some banks won't even give investment loans without charging points, which is crazy, but still a reality. Appraisal seems high to me for a SFH but it might be the area too. I would get a second and a third opinion just to make sure you have made the right choice - it is a big investment. The banks were overstaffed from just a few months ago and are moving so fast that I head of a conventional loan closing in 10 days! My point is that if you find better terms elsewhere - you can still close within the time frame you and the seller agreed upon, or just have an addendum signed and extend the closing date.

@Nina Erlandson

The reason why lenders charge origination or discount points on non-owner occupied is the COST that Fannie/Freddie charge to deliver a non-owner occupied loan to them. On the snip below you can see the cost to deliver a loan to Fannie for a 80% loan to value, non-owner occupied single family is 3.375% of the loan amount. That dos two things, drives the rate up as well as require in most cases points of some sort or the loan would not simply not be profitable and of course just not done. 

Chart showing cost for conventional loans