Will Higher Loan Costs Hit Today?
January 12, 2009
News on the mortgage front from people I trust - Fannie Mae’s new fee structure is about to work its way through the system, and some have predicted your rate and closing costs will be higher starting today.
Remember, it’s for Fannie Mae backed loans only - no FHA or VA, jumbo, or niche/portfolio loans.
So what’s this increased costs all about? Dan Green of The Mortgage Reports explains further here.
In a nutshell, Fannie Mae introduced risk-based pricing and it is about to come into effect. If they think you’re a bigger risk, you have to pay more to get the loan. More or less. So if you’re looking at a lender’s published rates, they may or may not apply to you because the lender now has to assess your risk level and adjust pricing for Fannie Mae loans.
Might be a good time to call your lender and check those rates and fees if you’re looking to buy a home and have a pre-approval in hand.
Will Higher Loan Costs Hit Today?
January 12, 2009
News on the mortgage front from people I trust - Fannie Mae’s new fee structure is about to work its way through the system, and some have predicted your rate and closing costs will be higher starting today.
Remember, it’s for Fannie Mae backed loans only - no FHA or VA, jumbo, or niche/portfolio loans.
So what’s this increased costs all about? Dan Green of The Mortgage Reports explains further here.
In a nutshell, Fannie Mae introduced risk-based pricing and it is about to come into effect. If they think you’re a bigger risk, you have to pay more to get the loan. More or less. So if you’re looking at a lender’s published rates, they may or may not apply to you because the lender now has to assess your risk level and adjust pricing for Fannie Mae loans.
Might be a good time to call your lender and check those rates and fees if you’re looking to buy a home and have a pre-approval in hand.
You Play Home Buyer – Which Do You Pick?
January 9, 2009
I was showing a couple homes to one of my buyer clients the other day, sort of a study in opposites.
One was a one-owner home from 1960 - with original everything: kitchen, flooring, bathrooms, light fixtures, wall paper, everything. But it has a nice floorplan, with excellent potential, and the neighborhood is one of my favorites, tucked away from traffic but close to everything with a stable population and low turnover.
The other was a fix-n-flip from 1950, a little bit smaller, a little bit more expensive, but remodeled from top to bottom. Not quite as stable of a neighborhood, but decent.
Both have nice lots. House #1 has a 1 car carport, house #2 has a 1 car garage. Both have central A/C.
The first house needs work, but it’s a little bigger. We’d want the foundation checked by a professional - there’s some cracking inside, and I’m not a structural engineer so I can’t say if those cracks are just typical settling on an older house or something to be worried about.
The second house has some very nice aspects, but some of the work was done quickly, not quite finished to perfection. And you always wonder on those, what signs of trouble have been patched and fixed and painted in the process of fixing and flipping? What signs of issues are gone that we would have seen if everything hadn’t just been renewed?
So which do you pick? And why?
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