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Gail, Home Buyer in Jackson Heights, Que...

Do we always have to pay one point to apply for mortgage for two family house?

Asked by Gail, Jackson Heights, Queens, NY Tue Jun 7, 2011

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Robert Spinosa’s answer

Gregorio's point below is that whether or not you pay the point "up front," on a two-unit property your lender will be pricing in a 1% charge either to the rate or to the cost (points). So you could still get a "zero point" two-unit home loan, but your rate would be higher on it than if the property were a 1-unit.

Hope this helps, but let me know if not.

Rob Spinosa
0 votes Thank Flag Link Tue Jun 7, 2011
No, you do not have to pay 1 point to apply for a mortgage on a two family home. If you are going for a conventional mortgage (FannieMae or FreddieMac) you are dinged (pay extra) for buying a 2 family instead of a single family home. A good lender will give you options on what you want to do.
0 votes Thank Flag Link Tue Jun 7, 2011
If you are doing a conventional conforming mortgage, then Fannie Mae has a 1 point adjustment on a 2 unit property. Each broker does not have their own fee schedule concerning Fannie Mae Loan Level Pricing Adjustments. You can avoid the 1 point by going with an FHA mortgage but that won't help because FHA has a 1 point Up Front MI Premium plus MIP for 5 years regardless or LTV.

The answer is yes, you have to pay 1 point for a 2 unit property, you can shop 100 lenders and you will get the same answer.

Page 4 for those that insist on answering mortgage questions: https://www.efanniemae.com/sf/refmaterials/llpa/pdf/llpamatrix.pdf
0 votes Thank Flag Link Tue Jun 7, 2011
Every mortgage broker or banker has their own fee schedule. You can shop around but be careful to compare all the charges and fees.

If you would like some varios referrals to be able to make these comparisons, contact me off line at Gail@GailGladstone.com or 631-425-6150
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Tue Jun 7, 2011
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