May Mortgage News
Mortgage rates are hovering near last month’s levels, despite the Federal Reserve rate hike. Recent comments from the Fed indicate a pause in rate hikes could be on the horizon. This is good news for banks and businesses feeling the squeeze from a tightening credit market.
Average Mortgage Rates
(U.S. weekly averages as of Friday, 5/4/2023 source: Freddie Mac’s Primary Mortgage Market Survey®)
30-Year Fixed @ 6.390% | 15-Year Fixed @ 5.760% | Prime Rate @ 8.250%
May Mortgage News Reality Check
Recently there has been a slew of misinformation reported on FHFA’s changes to Loan Level Price Adjustments (LLPAs), specifically, news citing that high-credit borrowers will be charged more than low-credit borrowers.
- Higher-credit-score borrowers are not being charged more so lower-credit-score borrowers can pay less.
- Many borrowers with high credit scores or large down payments will see their fees decrease or remain flat.
- The new framework does not provide incentives for a borrower to make a lower down payment to benefit from lower fees.
- The targeted eliminations of upfront fees for borrowers with lower incomes – not lower credit scores – primarily are supported by the higher fees on products such as second homes and cash-out refinances.
Real Estate Investment Portfolio Loans
Rental Portfolio Loans – For investors with 5+ rental properties, this cross-collateralized loan option provides access to long-term financing at fixed rates across an investment portfolio. Tap into the combined equity of your investments, consolidate for a better-blended rate, cash out, or acquire a new portfolio of rental properties with just one loan. Property types and locations can vary, and these loans are non-recourse.
This information provided courtesy of Lumen Mortgage. Lumen Mortgage has a full spectrum of financing for Residential, Multifamily & Agricultural properties.