You Play Home Buyer – Which Do You Pick?

Will Higher Loan Costs Hit Today?

January 12, 2009 | By Kelley Koehler | Filed Under First Time Buyer, Home Buying, Loans and Financing

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.

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