Fannie Mae and Freddie Mac are back like a bad burrito, adding their loan level price adjustments (LLPA) hits to any second home purchases!

Last year, not liking the amount of second home and investment properties they had in their portfolio (9% vs a target of 7%), Fannie & Freddie instituted a LLPA to second home and investment property purchases. These LLPA’s increase the cost of these second home and investment property purchases, which disincentives borrowers from making these purchases. Last Fall, they removed these LLPA’s to second homes and investment properties.

However, starting March 15th, the lenders are going to be raising their interest rates for specifically second home purchases. To give you an example of how this can affect your monthly payment, on a $400,000 mortgage, these LLPA’s can increase your payment as much as $200 a month!

As always, if you have any questions regarding second home purchases, please contact Chissell Mortgage Group at (727) 376-6900 or go to our website https://www.chissellmg.com.

NMLS ID: 327290; NMLS ID: 2062741

Equal Housing Opportunity