Do you know what that really means for you? If Mortgage Rates are Going Up, do you need to sit this out and wait for rates to normalize? The short answer is “maybe”. But take a look at what one our lenders just shared with us. There could be a great opportunity for you here.
Fannie Mae and Freddie Mac have removed their Loan Level Price Adjustors for borrowers that meet the following requirements:
First Time Homebuyer (No ownership in the last 3 years) with an annual income under $135,200
What does that mean? Borrowers with credit scores slightly lower, with down payments less than 25% or buyers looking at CONDOS won’t have to pay a higher rate.
Here’s an example:
$500,000 purchase price
10% down, buying a condo
with a credit score of 700 and
income less than $135,200 per year
In this scenario, you should have a rate of 6.625% today with normal pricing adjustments. But with this new enhancement your rate could be 5.875% which is a huge improvement.
If it’s all Greek to you, please reach out and we’ll connect you with a loan professional who can help you navigate the market.
You have OPTIONS in this market. No need to sit this out just because mortgage rates are going up. Buyer demand is down a bit – this is good for you as a buyer since there may be less competition. Don’t waste time – it’s always a good time to start building equity. Start your search here.
Have sellers missed the boat? Certainly not – even though demand has cooled, we are still facing an inventory shortage. Thinking about selling your home this year? Get your home’s value here.
The Blanchard Team stands ready to advise, consult and provide you with the information you need for all of your real estate questions.