|Mortgage rates increased again this week. The average rate on the 30-year fixed mortgage hit its last low of 2.75% at the end of January, and has since climbed pretty steadily, according to Mortgage News Daily. After a sizeable move overnight, it now stands at 3.45%, making homebuying even more expensive at the start of the all-important spring market.
Fannie Mae published a new rule on March 10th to make it tougher and more expensive to get an investment property mortgage. Borrowers who were planning to buy a second home with a conforming mortgage will likely encounter higher costs and possibly stricter requirements. The new rule puts extra risk on lenders, because they could be left with loans nobody wants to buy. Some lenders have already added a charge equal to 2.25% of the loan amount on all non-primary-residence applications.
The Fed just announced today that the temporary change to its supplementary leverage ratio (SLR) for bank holding companies will expire as scheduled on March 31. It means banks will have to lift their reserves by raising capital.
All applications should be locked when it gets approved. The rates may get worse before getting better, especially now with banks becoming new sellers in response to the Fed’s announcement this morning.
|IMPORTANT: Advertised rates were valid and effective as of the date reflected above, are for informational purposes only, and are subject to change without notice.
Loans are subject to credit and collateral approval. Advertised rates are based on a set of loan assumptions including a borrower with excellent credit history and optimal loan characteristics. Your final interest rate and annual percentage rate (APR) may differ depending on your individual transaction’s specific characteristics, and certain products may not be available for your situation. Several determining factors include, but are not limited to, the state of the property location, loan amount, documentation type, loan type, occupancy type, property type, loan to value, and credit score.
APR reflects the cost of credit over the term of the loan expressed as an annual rate. For mortgage loans, APR may include the interest rate, discount points (also referred to as “points”), and other charges or fees (such as mortgage insurance and origination fees), but does not necessarily take into account other loan-specific finance charges you may be required to pay.
|Golden Star, Inc. dba Transglobal Lending, 185 W. Chestnut Ave., Monrovia, CA 91016, NMLS # 1437002 (www.transgloballending.com). All rights reserved. Equal Opportunity Employer and Equal Housing Lender. All mortgage products are subject to credit property approval. Rates, Program terms and conditions are subject to change without notice. Additional conditions, qualifications, and restrictions may apply. This is not an offer for extension of credit or a commitment to lend.