New FHFA Rule May Raise Cost of Second-Home Mortgages
Fannie and Freddie will buy fewer second-home mortgages. That increases lenders’ risks and will likely translate into higher fees and/or interest rates.
Cash-out Refis Hit Highest Level Since Financial Crisis
Many owners were underwater (owed more than a home’s value) during the Great Recession, in part due to cash-out refis, but it’s not an issue now – at least not yet.
Senator Outlines Goals for Mortgage Reform; NAR Agrees
Government-owned Fannie Mae and Freddie Mac must be reformed, yet if done badly, it could threaten the U.S. housing market and possibly make 30-year mortgages obsolete. But a Senate Banking Committee member issued “guiding principles” that have been backed by NAR.
Buyers: Don’t Track Mortgage Rates, Track APRs
Smart buyers compare mortgage rates from multiple lenders, but the APR (annual percentage rate, which includes fees) is a better gauge of costs over time.