Mortgage Update: December 7
HUGE News for First-Time Homebuyers!
Currently, all loans have what are called loan level price adjustments. That is something that Fannie Mae, if you're getting a conventional loan, adds to interest rates either in cost or percentage rate to your overall interest rate. In other words, it makes it more expensive based on down payment and/or credit score for all buyers.
As of Monday, those loan level price adjustments for first-time buyers go away… As long as you're a first-time homebuyer and your qualified income is below 100% of your census tract’s area median income. First-time buyers are defined as someone who has not held title within the last three years.
This could mean as little as a half percent better in rate, or even a percent or a percent and a half better in rate. In other words, first-time buyers are saving huge dollars, as of right now, when you're buying a home.
For example, for a $200,000 loan amount and with today's interest rates, this could be about $120 per month in savings if you're a first-time buyer. Not all lenders have this available right now. We do!!!
First-time buyers come talk to us. We'd love to help. Thank you.