Posted January 23rd, 2012 under Market UpdatesConventional Loans Increase in Costs
Tags: Seattle Bellevue mortgage, 98004 mortgage, Seattle Bellevue home loans, Seattle Bellevue home mortgage, 98004 home mortgage
As a result of the Temporary Payroll Tax Cut Continuation Act of 2011, the Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to increase loan guarantee fees. In turn Fannie & Freddie have given short notice and they have begun to incorporate the “G-Fee” increase in their pricing to all lenders. This price increase will affect all Conforming Conventional Fixed Rate and ARM loan products. Government (FHA & VA) and Jumbo pricing will not be effected…yet. As of today, our Fannie & Freddie have begun to incorporate the G-Fee increase. The cost of your mortgage will increase .500%-.875% as a result of the “G-Fee” increase. So if you have a $250,000 mortgage the cost of getting the same loan today vs. last week just increased by somewhere between $1,250 - $2,187.50. Thank you FHFA!