Hi guys, I’m trying to purchase a house for a family member to live in but it will be under my name so the lender says that it will be categorized as an investment property as I already have a primary residence (with a mortgage).
I received this from the lender:
“Rate today on an investment purchase is 7.375% – costing 2.625 in points ($6168.75) at closing. Due to this being an investment purchase, the loans are riskier and will always come with points being charged to you”
My questions: Is it true that I will always be charged for an investment purchase? And is that rate and cost fair? My credit score is 820+ if that matters.
Thanks in advance for the feedbacks!
Posted by Meal-Savings