Mortgage rates for refinances may be about to increase due to an adverse-market refinance fee of 0.50%, that was just announced by Fannie Mae and Freddie Mac. The fee will go into effect for most refinance loans purchased by Fannie or Freddie on or after September 1st. Some lenders have already begun integrating this fee into their rates knowing that new rates locks will likely not close until after September. Borrowers will feel the increase in the rates. Typically, a fee of 0.50% equates to a rate increase of 0.125% to 0.250%. There is strong push back from groups such as the Mortgage Bankers Association, essentially, calling this increase unfair and a burden to homeowners.
U.S. Weekly Averages as of August 13th 2020
The U.S. average 30 Year Fixed Rate Mortgage increased 0.08 this week to 2.96% with 0.8 Fees/Points as of August 13, 2020. The 15 Year Fixed Rate ticked up 0.2 to 2.46% with 0.8 Fees/Points. This information is posted weekly by Freddie Mac and can be found at www.freddiemac.com.
If you are interested in refinancing your mortgage or, if you are purchasing a home, please call or text me at (201)715-2251 or, email Lbodnar@plsmtg.com.
Note: Mortgage rates are based on factors including, but, not limited to, credit score, loan amount, loan to value ratio, loan term and loan purpose. Rates are volatile and, subject to change without notice based on market conditions. The prevailing rate can be locked in at the time of application.
Leigh Bodnar -Mortgage Loan Originator – NMLS #192707
This advertisement is for first mortgages only and subject to credit and lenders approval. Private Lending Services is a licensed mortgage broker in NJ, PA and FL. The office address is 878 Pompton Ave with NMLS number 1671676. Mortgage brokers are not empowered to make mortgage loans. Your Actual rate, payment and costs could be HIGHER. Get an official Loan Estimate before choosing a loan.