Fannie Mae's latest hits to rate will be implemented by lenders any day. Condominiums are really getting spanked with a 0.75% add to fee if there is less than 25% home equity in the property. This will apply to both purchases and refinances for any mortgage except those amortized 15 years or less.
Here's an example of a rate I just quoted based on a value of $330,000 and a loan amount of $264,000 (80% LTV) for a rate term refi 30 year fixed:
Current: 4.875% priced with 1 point (apr 5.013)
Here's what the 0.75% fee would look like if implemented right now (based on current pricing):
- 4.875% priced with 1 point plus 0.75% fee. $1980 more in fee for a loan amount of $264,000.
- 5.250% priced with 1 point (0.75% fee priced into the rate). $60 higher in mortgage payment for a loan amount of $264,000.
If you are considering refinancing your condo, contact your local mortgage professional right away (I can help you if you're located in Washington state)...if you're in the process of buying a condo and are "floating" your interest rate, I highly recommend considering locking.
PS: Cash-out refinances are also getting whammo'd by Fannie. Don't wait!
