Is 7.5% too high for investment property if I have great W2 and excellent credit scor

[Shak F.]

I am a newbie to BP. Thank you in advance for your responses and advice.

I am in process of purchasing a single family investment property in Charlotte. My credit score is an excellent and I have a great W2. I am trying to get conventional 30 years loan with 20% down.

I contacted 2 brokers. They gave me 7.5% with 1% cost.  Is this too high or this is current normal rate?

if anyone has a good recommendation, it would be greatly appreciated.

thank you 

[Jay Hurst]

Quote from @Shak F.:

I am a newbie to BP. Thank you in advance for your responses and advice.

I am in process of purchasing a single family investment property in Charlotte. My credit score is an excellent and I have a great W2. I am trying to get conventional 30 years loan with 20% down.

I contacted 2 brokers. They gave me 7.5% with 1% cost.  Is this too high or this is current normal rate?

if anyone has a good recommendation, it would be greatly appreciated.

thank you 

 @Shak F.  Consider putting 25% down as that will lower the rate or costs and maybe both. 20% is the number most assume will get you the "best rate" as it is usually the target for owner occupied properties. But, for non-owner occupied is the target is 25% down. 

This is because of what are called loan level pricing adjustments. The chart below shows the additional cost for a base rate for situations including investment property. You will see the adjustment for 80% loan to value is 3.375% where with 25% down it is 2.125%. 

https://singlefamily.fanniemae.com/media/9391/display