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Updated over 9 years ago on . Most recent reply

Wayne Solum's profile image
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Wayne Solum
  • Database / SQL Developer
  • from Round Rock, Texas
  • Member since Aug 27, 2015
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Wayne Solum's profile image
Wayne Solum's profile image
Wayne Solum
  • Database / SQL Developer
  • from Round Rock, Texas
  • Member since Aug 27, 2015
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Wayne Solum
  • Database / SQL Developer
  • Round Rock, TX
2
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13
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Private Lending & Conventional Mortgage Advice

First investment property - Paying points to get 5%. Why?

Wayne Solum
  • Database / SQL Developer
  • Round Rock, TX
Posted

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

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Brianna H.'s profile image
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Brianna H.
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  • from Katy, Texas
  • Member since Jun 16, 2015
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Brianna H.
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  • from Katy, Texas
  • Member since Jun 16, 2015
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Brianna H.
  • Investor
  • Katy, TX
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Brianna H.
  • Investor
  • Katy, TX
Replied

 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. 

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