If you’re in the process of refinancing or looking to get qualified to purchase a home, one of the biggest changes you’ll notice this year will be the COST of acquiring a loan these days. Both Fannie Mae and Freddie Mac (congressionally chartered mortgage investors) will have additional fees applied to new residential loans beginning in the Spring of 2011. And since Fannie and Freddie account for nearly two-thirds of new mortgage originations in the U.S., it will have over-reaching affects on all of us. Even if you have stellar credit and over 20% down on a purchase, new fees will be in affect. ”These fees are just the start of the multilayered, cumulative risk-based pricing system that both Fannie and Freddie employ, ” states columnist Kenneth Harney. “What’s the justification for these add-ons? Although Fannie Mae declined to comment on its latest fee hikes, Edward J. DeMarco, acting director of the federal agency that oversees both Fannie and Freddie, called the add-ons ‘necessary to protect (the companies) from the costs and risks’ inherent in the mortgage they buy or guarantee.” The inference here for borrowers in 2011: It’s time to pay the piper. It’s important to know what you or your clients might be getting into, so please don’t hesitate to call or email to discuss further. Remember, Your (and your clients’) Mortgage Matters… Todd Galde
TGalde@LMGlending.com
www.ToddGalde.com
Keller Williams Realty Boise - Nampa, ID
It seems to be getting more and more challenging for borrrowers to get into home! KInd of a vicious cycle...we can't sell them if we can't get them loans...and buyers who would like to move up can't until the values rise...which can't until inventory levels come down....LOL
Jan 09, 2011 09:41 AM
RPM Mortgage - Danville, CA
Tucker Associates Real Estate Services - Danville, CA
Bay Area Real Estate Views
Very nice spotlight Todd on the upcoming changes. Everyone needs to understand that these pricing "tweaks" will have an effect on affordability.
Jan 17, 2011 03:12 PM
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almost 13 years ago
Helping Home Loan consumers and Realtors who serve them to become more empowered during the home buying (or refinancing) process. Because "your mortgage matters", it's important to pay attention to the details and treat it with the importance it deserves.
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