Everyone seems to be interested in where the mortgage rates are going because there are still so many people out there who are either looking and waiting to buy or refinance their existing ARM rates that have adjusted or about to adjust. For those of you who waiting for rates to improve, you may be disappointed by the recent activities in the mortgage market.
Freddie Mac has announced that it is increasing the Market Condition delivery fee rate from 25 to 50 basis points. Additionally it will be implementing additional risk based pricing adjusters, for LTV, Credit score and other risk factors. Freddie is also modifying several other delivery fees for Alt-A, A-minus products to equate their pricing with the risk in those products.
What does this mean in plain English? Freddie Mac is one of the agencies that buys conforming loans from lenders who originate mortgage loans. This statement means that Freddie will increase their fees for buying certain type of loans, and in turn, this increase will get passed to consumers in the rates they will be getting.
So, my advice to those who are still waiting is to get your paperwork together and get moving. At the minimum, talk to a mortgage planner to understand all your options.
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