While the Federal Government’s plan to keep mortgage rates near historic all time lows is working for the time being, an upcoming tax on loans guaranteed by Fannie Mae and Freddie Mac is certain to result in higher mortgage rates for consumers.
Last month, the Federal Housing Finance Agency (FHFA), the regulatory body for Fannie Mae and Freddie Mac, announced it will be increasing it’s G-Fee by 10 basis points on all single-family mortgages.
A G-Fee or Guarantee Fee, is a fee lenders pay Fannie Mae or Freddie Mac to guarantee their loans. In general, for each 10 basis points change to the g-fee, mortgage rates change 0.125 percent.
The increase goes into effect on loans guaranteed by Fannie Mae or Freddie Mac after November 1, 2012.
Now is the time to lock. Once the g-fee increase goes into effect, all loans will be impacted.
If you have any questions about the FHFA’s announcement of the g-fee increase or would like to lock your rate, please contact Scout Mortgage at 480.607.7906.