Jeff’s Carlsbad Blog for First Time Home Buyers

Upcoming Changes in Mortgage Pricing – BEWARE

Posted in Financial,Mortgage info by Jeff Dowler on December 18, 2007
Tags: , , , ,

Fannie Mae and Freddie Mac have announced changes in the pricing of CONFORMING mortgages that will take place beginning MARCH  1, 2008.

Key factors:

  • Less than 30% down-payment (that’s most folks)
  • Credit Score of less than 680 (do you know YOURS?)

If you fit either of these criteria you will be paying more for your mortgage, based on the following:

Credit Score | Pricing Adjustment

679 – 660 = .75%

659 – 640 = 1.25%

639 – 620 = 1.75%

620 & below (or missing Credit Score) = 2%

That’s SIGNIFICANT money and even if the rates are lower (right now they are below 6% for a fixed rate) you could end up spending a lot more for your mortgage.

Find out what YOUR credit score is and start planning. There may be things you can do to get your score above 680 in the next couple of months so you can avoid these extra fees.

Or get busy and buy a house BEFORE these new pricing changes take effect.


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