Mortgages getting more expensive

Fannie Mae  has introduced higher discount point charges on most conventional mortgages effective with loan applications on January 18, 2011. The additional cost is anywhere from .25 to .75 discount point & affects buyers with all credit scores , even those with scores 740+ with 20% downpayment on mortgage terms greater than 15 years. 

Those homebuyers who wish to utilize secondary or “piggyback” financing to avoid Private mortgage insurance will have discount points raised anywhere from .25 to .75 discount point. This is effective with all mortgage applications on January 18, 2011.

Along with rising mortgage rates, this does not bode well for homebuyers!

FHA and VA loans had no change in discount point charges.


About lizschneider66

Mortgage consultant with over 19 years experience. First time buyers, move up buyers, construction, FHA/VA, Jumbo loans, investment property purchases, & refinances- I will find the solution to financing the American dream of homeownership! Subscribe to my blog and never miss any mortgage industry news. I am Vice President of the North Coast Building Industry Association, Lorain County Association of Realtors, Working Women Connection and Womens Council of Realtors.
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