being charged 5.125% mortgage rate for credit score of 845.

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Hello,

I am buying my first out of state investment property in PA.

3/1.5 SFH.

Purchase Price is 110k , needs a new roof, some TLC. Planning for 20 % down.

Similar fixed up properties there are going for 150-155k in that zip code.

I have a good credit score(845). The morgage brokers I spoke to are saying that because the loan amount is so low- they need to charge me 5.125 % and 1 or 2 points (to be able to make a profit) . As apparently Fannie mae charges 3 points for investment properties.

I can also just pay cash for the property. Should I just go ahead , pay cash , fix it up and refinance when the appraisal comes back higher after fixing it?

Thank you.

Ani.