G Fees Increasing for Conventional Mortgages
The Federal Housing Finance Agency (FHFA) recently announced that there will be an increase in the fees associated with conventional mortgages. More specifically, there is to be an increase in ‘G-fees’ throughout 2014, meaning that it will cost banks more money to do business with Fannie Mae and Freddie Mac.
These banks will then, in turn, charge the consumer with higher interest rates or fees to account for the changes. The increase was due to the FHFA’s recent annual report showing that costs had gone up significantly in 2012; these changes will help offset that.
Mortgage Rates 2014 … what now?
So, what does this mean for you and your family if you are looking to buy or refinance a home? It means you should act fast if you’re in a position to. The rate increases mentioned here are in addition to the significant mortgage interest rate increases projected in the future.
The bottom line : It’s almost a certainty that mortgage rates 2014 will be higher; and with home prices increasing around 15% annually right now, your window to buy may be closing. Don’t wait, speak with a someone today about your situation.