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  • October 2010
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  • Mary K. Lenahan, J.D., Realtor

Historical Low Interest Rates Come with a Cost: Fannie and Freddie Add-On Fees


According to an article in the LA Times, if you want to take advantage of historically low-interest rates, you will have to pay “loan-level pricing adjustments”:  aka add-on upfront fees for refinancing imposed by Fannie Mae and Freddie Mac.   

Some of the hurdles and costs confronting a borrower are “sharply increased credit score requirements, higher down payments and add-on fees imposed by mortgage giants Fannie Mae and Freddie Mac, which control about two-thirds of the loan volume”. 

http://articles.latimes.com/2010/oct/10/business/la-fi-harney-20101010

If you can qualify – those hurdles may be worth jumping and costs may be worth paying.  California rates today for a 30 year fixed is 4.06%. 

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