There is an article from the Los Angeles times dated February 16th warning of significant new loan fees and higher interest rates for conventional loans to be made through Fannie Mae and Feddie Mac beginning April 1st. GNMA, which purchases VA loans and FHA insured mortgages has also announced that they will be making similar adjustments in pricing.
These new fees and increased interest rates could have a significant effect for many buyers with FICO scores of less than 740. Buyers of a condo with less than a 25% down payment will pay a 3/4 of a percent higher interest rate on their loan regardless of their credit score.
For those of you who have been considering buying a property to take advantage of the significant price reductions and the historically low interest rates today, I would strongly encourage you to consider looking at properties right now before these new fees and increase in interest rates take effect. Please call me and I would be happy to discuss this with you or to help you find that perfect home.
For more information about buying a home in the South Bay of Los Angeles or the Ppalos Verdes Peninsula, visit my website at http://www.maureenmegowan.com
