In a single moment, the fees for a vast majority of new mortgages in the US have changed. In some cases, the changes are drastic, both for better and worse. Let's break it down. What do you mean by "fees/costs?" This refers to Loan Level Price Adjustments (LLPAs) imposed by Fannie Mae and Freddie Mac (the "agencies"), the two entities that guaranty a vast majority of new mortgages. LLPAs are based on loan features such as your credit score, the loan-to-value ratio, occupancy (owner vs non-owner occupied homes), and most recently, your debt-to-income ratio What lenders/loans does this apply to? Any loan guaranteed by one of the agencies regardless of the lender. This is MOST loans in the US. Examples of loans that wouldn't be affected would be FHA/VA as well as certain jumbo and specialty products. "Non-conforming" loans are not impacted by this as they are not guaranteed by the agencies. A common example of a non-conforming loan would be a jumbo loan from a retail bank or credit union. When does this take effect? This applies to loans that are guaranteed by the agencies starting May 1st, 2023. That means many lenders will begin to implement the changes in March/April. What changed, in a nutshell? The effective penalty for having a credit score under 680 is now smaller than it was. It still costs more to have a lower score. For instance, if you have a score of 659 and are borrowing 75% of the home's value, you'll pay a fee equal to 1.5% of the loan balance whereas you'd pay no fee if you had a 780+ credit score. But before these changes, you would have paid a whopping 2.75% fee. On a hypothetical $300k loan, that's a difference of $3750 in closing costs.
| Mortgage Rate Watch | | Mortgage Rates Are Actually Slightly Higher This Week | | If you cross paths with the average mortgage rate article (or tweet/post/etc) today, chances are you'll see some mention of "rates moving lower." That's both true and untrue, depending on your perspective. The articles in question would likely... (read more) |
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| 30 Yr. Fixed Rate | | 6.11% +0.07% |
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| Rate | Change | Points |
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| Mortgage News Daily | | 30 Yr. Fixed | 6.11% | +0.07 | 0.00 | | 15 Yr. Fixed | 5.15% | +0.03 | 0.00 | | 30 Yr. FHA | 5.70% | +0.05 | 0.00 | | 30 Yr. Jumbo | 5.66% | +0.01 | 0.00 | | 5/1 ARM | 5.96% | +0.01 | 0.00 | | 30 Yr. VA | 5.75% | +0.05 | 0.00 | | Updates Daily - Last Update: 1/19 |
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| 15 Yr. Fixed Rate | | 5.15% +0.03% |
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| Rate | Change | Points |
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| Freddie Mac | | 30 Yr. Fixed | 6.15% | -0.18 | 0.00 | | 15 Yr. Fixed | 5.28% | -0.24 | 0.00 | | Updates Weekly - Last Update: 1/19 |
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| Mortgage Bankers Assoc. | | 30 Yr. Fixed | 6.42% | -0.16 | 0.73 | | 15 Yr. Fixed | 5.94% | -0.12 | 0.62 | | 30 Yr. Jumbo | 6.09% | -0.03 | 0.66 | | Updates Weekly - Last Update: 1/11 |
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| UMBS 30YR 5.0 | | 100.47 -0.13 |
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| MBS | | UMBS 5.0 | 100.47 | -0.13 | | UMBS 5.5 | 101.52 | 0.00 | | GNMA 5.0 | 100.55 | -0.08 | | GNMA 5.5 | 101.31 | +0.03 | | Pricing as of: 1/19 5:31PM EST |
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| 10 Year US Treasury | | 3.3933 +0.0203 |
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| Price / Yield | Change |
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| US Treasury | | 2 YR Treasury | 4.131 | +0.046 | | 5 YR Treasury | 3.483 | +0.044 | | 7 YR Treasury | 3.434 | +0.031 | | 10 YR Treasury | 3.393 | +0.020 | | 30 YR Treasury | 3.567 | +0.027 | | Pricing as of: 1/19 5:31PM EST |
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