Mortgage costs for borrowers without big down payments and with less-than-perfect credit scores are set to rise next spring.
Freddie Mac and Fannie Mae, maybe you have heard of them, they just happen to be two of the larger mortgage / finance companies out there that are dominating the mortgage market. It seems that they will be raising the fees that they charge the lenders. The lenders will then pass along those fees to consumers in the form of higher interest rates.
Fannie had an update posted on its website that showed just how high rates could go. Click out the numbers on their website - Click the button below to view the page.
Freddie Mac and Fannie Mae, maybe you have heard of them, they just happen to be two of the larger mortgage / finance companies out there that are dominating the mortgage market. It seems that they will be raising the fees that they charge the lenders. The lenders will then pass along those fees to consumers in the form of higher interest rates.
Fannie had an update posted on its website that showed just how high rates could go. Click out the numbers on their website - Click the button below to view the page.
The Federal Housing Finance Agency, who regulates both Fannie and Freddie have been working together to make these changes. It Seems the FHFA wants to raise these fees in an effort to make non-government-backed lending more competitive, particularly for riskier loans. Even with the latest changes, Fannie and Freddie will be charging less than what the regulator believes a private investor would require to meet a traditional rate of return. Hurry hurry and get your financing now! Happy hunting.
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