Commercial loan VS Conventional loan

[Tom Server]

So I'm buying a 3 family home..$250,000 in NJ , I'M taking a conventional investment loan 30 year with 25% down non owner occupied. 

Did a lot of browsing around with different lenders.  

So this rate was the best rate I got from shopping around from 4 or so lenders

7.49%  (discount points of 2.83% of $187,500... $5306.25) 

7.85%APR

Talking to other investors, they keep telling me, I shouldn't buy the points, cause you're throwing the money up front away if you're planning to refinance in 3 years.

Speaking to the all the lenders they all are telling me I am forced to purchase point. 

So now im being told I should look at a commercial loan.. I am not familiar with a commercial loan is their any benefit using a commercial loan?

thanks

[Robin Simon]

If you are referring to "DSCR Loans" there are a lot of pros and cons in going with this option - check out a couple of these articles for further details but one main thing is if you plan to hold for a while - since a key feature of DSCR commercial loans is that there is prepayment penalties only assessed if you sell or refi within the first five years or so - so you can avoid paying some points up front and get pretty comparable rates if you are comfortable with some prepayment penalties baked in.

DSCR Loans: What Are They And How To Get The Best Terms

https://www.biggerpockets.com/...

DSCR Loans: How To Use Pro Strategies To Save More And Make More

https://www.biggerpockets.com/...