As an Encinitas Realtor I try to make sure that you get the latest news on Encinitas real estate. The news from an Encinitas Realtor concerns guarantee fees being increased by the largest lenders Fannie Mae and Freddie Mac.
Regulators announced on Friday that they would order Fannie Mae and Freddie Mac to increase the guarantee fees that they charge to lenders. The increase is about 10 basis points (or 0.10%). As an example, this would cost a borrower about $4,000 over the course of a 30-year mortgage of $200,000.
Loans that are sold to the institutions for cash will see the increased fees take affect on November 1st of this year, while those that exchanged loans for mortgage-backed securities will see an increase effective December 1st.
Those at the American Bankers Association believe that the right time to institute these increases is now as, even though this measure will have a minute affect on pricing, mortgage rates are still exceptionally low so they feel that the impact will be negligible.
Basis points (which equate to one one-hundredth of a percent) on guarantee fees could see a rise ranging from 60 to 100 based on the geography of homes and the slow implementation of these guarantee fees.
If you are looking for homes for sale in Encinitas, choose the best Encinitas real estate agent that can guide you through guarantee fees, contracts, and all of the confusing pieces of purchasing or selling a home in Encinitas correctly.