The interest rates have been at historic lows and bank’s are busier than ever meeting the demand of borrowers that are requesting to refinance their mortgage. It has been an ideal time to lower your mortgage payment or get cash out from your property. But on August 12th,2020 Fannie Mae and Freddie Mac added a loan level pricing adjustment to loans that they were buying from lenders which drastically changed the refinance interest rate market. So if you got a rate quote after August 12th, you were not happy because you had to pay more closing costs and your rate was not as competitive as before this time period. This was a nightmare for a lot of loan officers that were floating rates for borrowers and now all of a sudden the interest rate market was no longer competitive! However yesterday (08/26/20) both of the GSEs decided to delay the pricing adjustment till December 1st and we are back to where we were!
In the video I explain what loan level pricing adjustments are and how a small change in the adjustment can really change the mortgage rate market for the worse.
The real question:
Should you lock your rate now? or wait?
Watch the video to find out!
Please feel free to comment or DM me if you have any questions or comments about the mortgage interest rate market! I love to hear from you! Until next time…