Delaware mortgage rates will be increasing in the first quarter of 2012 for all conventional loans backed by Fannie Mae and Freddie Mac because of bill to extend payroll cut extrension for two months. Two month extension costs borrowers for next 10 years! You need to act fast to avoid the interest rate increase, call now at 302-703-0727 or APPLY ONLINE to avoid paying this higher rate.
The U.S. Congress recently passed a two-month payroll tax cut extension. The $33 billion package is funded by a 10-year increase in the Guaranty Fees that Fannie Mae (Fannie) and Freddie Mac (Freddie) charge lenders to guarantee home loans.
This change is effective for all loans delivered to Fannie and Freddie at the beginning of the second quarter of 2012. For example, the cost of a $200,000 mortgage will go up about $11 per month. Over the life of the loan, these costs are anticipated to be about $4,000.
These changes will also increase the cost of FHA and VA loans. However, the government has not released information as to the timing of these changes.
All lenders — by law — will be adding this increase to their pricing which means your mortgage interest rate will be increased to pay for this fee increase.
If your customers want to avoid these additional costs they’ll need to act soon. If you have been sitting on the fence, call me now at 302-703-0727 to find out how best to avoid these higher mortgage costs or APPLY ONLINE now.
John R. Thomas
Certified Mortgage Planner – NMLS 38783
Primary Residential Mortgage
248 E Chestnut Hill Rd
Newark, DE 19713