In February, I blogged about Fannie Mae’s Greatest Hits, referring to all of the things that can impact an individual’s interest rate.

    These things include credit score; loan amount; property type (e.g. condo vs. SFR); and loan purpose (e.g. cash out refi vs. purchase).

    I beat this dead horse very often because people so often do not understand why different borrowers get quoted different rates on the same day by the same lender.

    Those “hits” (known as “Loan Level Price Adjustments” Or LLPAs) can easily impact an interest rate by 1% or more.

    First-time Homebuyers Don’t Get Hit!

    I also like to remind readers and borrowers alike that Fannie Mae and Freddie Mac waived ALL those “hits” for First-Time Homebuyers: Fannie Mae Made Rates Way Lower for First-Time Homebuyers.

    We sent a rate quote to a borrower yesterday in fact that was 1.5% LOWER than it otherwise would have been if the borrower was NOT a First-Time Homebuyer – and that prompted today’s blog.

    ONE MORE REMINDER: Please make sure borrowers watch for points and hidden fees.

    We are still seeing borrowers fall for rate quotes with hidden points and fees.

    Some of the credit unions that are no longer competitive with their rates seem to be particularly adept at these misleading quotes.

    Our advice is to have us help buyers carefully compare Loan Estimates.

    Jay Voorhees
    Founder | JVM Lending
    (855) 855-4491 | DRE# 1197176, NMLS# 310167

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