Recent FHFA Changes and How They’ll Impact You!

The Federal Housing Finance Agency (Fannie Mae and Freddie Mac) recently announced that effective September 1 there would be an Adverse Market Refinance Fee, which applies to all mortgage refinances serviced by government entities. The so-called “Adverse Market Refinance Fee” (Fannie is also calling it a “Loan-Level Price Adjustment,” while Freddie’s alternative label is a “Market Condition Credit Fee in Price”) would assess a 50-basis point fee for both no cash-out refinance mortgages and cash-out refinance mortgages. This means lenders will pay an extra 0.5 percent of the loan amount as a one-time charge. This would add as much as $1400 to refinances. That was the bad news.

The better news is that on Tuesday, August 25, the FHFA announced that Fannie Mae and Freddie Mac would delay the implementation of the controversial Adverse Market Refinance Fee. The fee will now be applied starting December 1 rather than September 1. Along with this news, the FHFA said Fannie Mae and Freddie Mac will exempt refinance loans with balances below $125,000 along with Home Ready and Home Possible products. Mortgage Bankers Association President and CEO Robert Broeksmit said, “We welcome today’s announcement from the FHFAamending the recently announced Adverse Market Refinance Fee from Fannie Mae and Freddie Mac. Extending the effective date will permit lenders to close refinance loans that are in their pipelines and honor the rate lock commitments they made to their borrowers, ensuring that economic relief in the form of record low interest rates will continue to flow to consumers.”

If you are thinking of refinancing to take advantage of the truly historic low rates we are seeing right now, then please give me a call. I can recommend a good lender – either one we work with constantly – or one who works for your current bank. I want to make sure that you get the best rates and best service possible and I am happy to share my contacts with you to make that happen!

Can You Buy a House With a High Income and Low Credit Score?

A mortgage lender looks at several factors when deciding whether to approve a loan application. A lending institution wants to know that a borrower has both the ability and the will to repay debts. If you have a high income and a low credit score, a lender may have reservations about approving your mortgage application.

All About the Second Mortgage – Good Idea?

If you need money for home improvements, to pay college tuition or another purpose, you might be able to secure funds with favorable terms through a second mortgage. Before you do so, it’s important to make sure you understand the terms and potential risks.

How to Prepare for a Home Refi

prepare for home refi

With interest rates hitting incredibly low numbers, you might be thinking of refinancing your home. You may be considering whether to choose a 30 year fixed mortgage again with so many options to choose from. Regardless of which type of mortgage you choose, you want to be prepared when you call your lender. Remember when you got your finances in order to apply for your original mortgage? You want to prepare for a home refi in the same way.