Buying down points???

[Dan Thomas]

Hello,

  I am in the process of getting pre-approved for my first investment property loan.  I am being told that I need to buy down my interest rate, which is very surprising to me.  I thought that was only the case with credit score issues or cash reserve issues (neither are an issue for me).  These are the options I was provided:

80% LTV – 3.625% - paying 1.60% in discount points

80% LTV - 4.50% - paying 1.33% in discount points

75% LTV – 3.375% - paying .60 in discount points

Is this a normal practice in investment property loans?  This is for an out of state single family home located in Florida.