Many homeowners needing to refinance are waiting. They are waiting for rates to come down. Waiting for the value of their homes to increase. They are waiting for lenders to ease up on their underwriting guidelines and make it easier to qualify for a loan. Waiting may cost you a lot of money!!!
Fannie Mae, the largest US mortgage - finance company announced on Wednesday it will increase the fee charged to lenders to purchase mortgages on October 1st. The fee will increase from .25% to .50%. Just like any other tax or fee, this will no doubt be passed on to the consumer, making it more expensive for future home buyers and those looking to refinance. Waiting much longer may get real expensive in the very near future.
The majority of loans made in this country are ultimately sold to Fannie Mae or Freddie Mac. Both companies are taking tremendous losses and looking for ways to increase capital. An increase in mortgage delinquency along with record numbers of foreclosures will force the two mortgage giants to increase fees to lenders. Lenders are not in positions to take on those fees, and ultimately will pass them along to the homeowners. Homeowners waiting for the next dip in rates may have already missed that opportunity.
The real estate industry has done its own version of the hokey pokey in the last year and a half. Every few days it seems we take one step forward, then take another two back. New programs are announced one day, and rates increase the next to offset any opportunities available. The housing market is looking for a shot in the arm to move forward, and this is not going to help. This cost could ultimately have all homeowners dancing two steps back.
For homeowners with marginal credit waiting for rates to dip, you may want to contact your mortgage lender now and find out what options are available. Better to be safe now than sorry in the very near future.
For more information on programs available, check out my virtual loan department at www.tmmortgagegroup.com.
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