Thursday, January 13, 2011

Fannie & Freddie increase loan adjustments

Fannie Mae & Freddie Mac recently announced an increase in the loan level price adjustments. If you haven't locked in your rate you should do so now before these new changes go into effect.

On average the adjustments are about 50 basis points. For example a $150,000 loan you will have a pricing adjustment of $750 in additional closing costs to get that current rate. $150,000 x .5% = $750.

Instead of paying the additional 50 basis points you also have the option of going with a higher interest rate. Depending on your credit score, loan program, and loan to value this could be anywhere for 1/8 to 1/4 point higher interest rate.

If you are looking to purchase or refinance give me a call today at (920) 788-9608 or apply online at https://www.getapprovedfast.com/application.asp.  Interest rates are expected to rise in 2011.