Expect to Pay More for Mortgage on Condo, Duplex, Refi
Freddie Mac is matching Fannie Mae’s increases in fees for many mortgages beginning April 1, 2009.Borrowers can expect an immediate increase.
The new rates will apply regardless of sizable down payments or pristine FICO scores.
Lenders are already reporting ‘delivery fees’ of up to 1.5% for Fannie and Freddie-backed loans.
New mortgages for duplexes, where one side will be owner occupied, will be subject to a 1% penalty, regardless of high FICO or down payment, according to new guidelines recently announced by Freddie Mac.
Condo buyers will pay an extra 3/4 point.
Refi’s with cash can cost up to 3 points.
A spokesman for Freddie Mac says these hikes are necessary to deal with the current risks brought on by falling home prices, which are expected to continue to stumble throughout the year, and by astronomically high default rates on these types of loans.
See more on Real Estate Financing.
American Apartment Owners Association offers discounts on products and services for landlords related to your real estate investment including REAL ESTATE FORMS, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.
To subscribe to our blog, click here.
Accessibility