Private Lending & Conventional Mortgage Advice
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated over 9 years ago on . Most recent reply
First investment property - Paying points to get 5%. Why?
I'm going through the loan documents and noticed I'm paying for 3.376 discount points to get a rate of 5%. I have a FICO of 814, excellent credit history, and interest rates are low - why am I having to pay points to get 5%? Are mortgage rates for investment properties higher by nature or am I needing to shop around?
Thanks,
Wayne
Most Popular Reply
Absolutely shop around! I just bought an investment house with a rate of 4.5% and my FICO is lower than yours (probably around 780 or so). My advice is to get at least 3 different lenders quotes and compare them.