Sedona Homes Online

#1 Sedona Real Estate & Sedona Home Search - Sedona AZ Foreclosure Homes

(928) 451-6098
  • Home
  • Search
    • Featured Homes
    • Personal MLS Portal
  • Local Info
    • Service Providers
    • Utilities List
    • Sedona History
    • Schools
    • Real Estate Taxes
  • Buyers/Sellers
    • Buyers
    • Sellers
    • Why Work With A CRS?
    • Calculators
    • Arizona Buyer Advisory
  • Contact
    • About Troy & Susan
    • Sedona Real Estate Blog
    • Reviews
  • Search
  • What’s it Worth?
  • ContactGet in Touch
    • About Susan & TroyAll About Us
You are here: Home / The Economy / Coming Next Week : New, Mandatory Loan Fees For All Conforming Mortgages

Coming Next Week : New, Mandatory Loan Fees For All Conforming Mortgages

September 7, 2012 By Troy Deierling Leave a Comment

New g-fees threaten low mortgage ratesBeginning as soon as next week, new, mandatory mortgage fees will push mortgage rates higher throughout Sedona and nationwide. Fannie Mae and Freddie Mac are raising their respective “guarantee fees”.

Guarantee fees are fees that mortgage-backed securities providers charge to lenders for mortgage-related services including the bundling, selling and reporting of mortgage-backed bonds. 

Guarantee fees are also used to insure providers against credit-related losses.

As announced by the Federal Housing Finance Agency, effective for all conforming loans delivered to Fannie Mae or Freddie Mac, beginning November 1, 2012, guarantee fees will be raised by an average of 10 basis points per loan.

Conforming mortgages already average close to 30 basis points in guarantee fee per loan.

This is the second time this year that the FHFA has raised guarantee fees, with the most recent increase translating into an approximate 50-basis point worsening in consumer mortgage pricing. That today’s home buyers and refinancing households will soon pay higher loan closing costs as a result.

To use a real-life example, Freddie Mac reported that the average 30-year fixed rate mortgage was 3.55% nationwide this week for borrowers willing to pay an accompanying 0.7 discount points. 

Once the new g-fee is implemented, the discount points change : 

  • Prior to guarantee fee increase : 3.55% with 0.7 discount points
  • Post guarantee fee increase : 3.55% with 1.2 discount points

Post-increase, in other words, an identical Freddie Mac loan requires an extra half-point to get to closing, or $500 in additional closing costs per $100,000 borrowed.

These fees will soon appear on rate sheets, if they haven’t already.

Lenders know that it can take up to 60 days to lock a loan, approve it, fund it, then package it for delivery. Loans locked today, therefore, will likely be delivered to Fannie Mae or Freddie Mac after the November 1, 2012 deadline. As a result, mortgage pricing will soon include the effects of the g-fees.

Perhaps as soon as this morning.

Filed Under: The Economy Tagged With: FHFA, G-Fee, Guarantee Fee

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Contact Us

Sedona AZ Real Estate Broker Susan Deierling, ABR, CRS
Assoc. Broker
Realty Executives
Northern Arizona
Sedona AZ
(928) 451-6098 mobile/text/VM
(888) 494-0470 (US & Canada)
susan@sedonaemail.com

Contact Me | About Us

Sedona AZ Homes for sale Troy Deierling ABR CRS
Realty Executives
Northern Arizona
Sedona AZ
(928) 202-0700 mobile/text/VM
troy@sedonaemail.com

Contact Me | About Us

Contact Susan

Sedona AZ Real Estate Broker Susan Deierling, ABR, CRS
Assoc. Broker
RE/MAX Sedona
Sedona AZ
(928) 451-6098 mobile/text/VM
(888) 494-0470 (US & Canada)
susan@sedonaemail.com

Contact Me | About Us

Contact Troy

Sedona AZ Homes for sale Troy Deierling ABR CRS
RE/MAX Sedona
Sedona AZ
(928) 202-0700 mobile/text/VM
troy@sedonaemail.com

Contact Me | About Us
Realtor MLS HUD

Deierling & Deierling PLLC // All Rights Reserved Copyright © 2021 ยท Log in

Sedona home search

Sedona Homes Online Sitemaps | Post | Pages | Video | Category | Author | HTML

The data relating to real estate for sale on this website comes in part from the Sedona Verde Valley Multiple Listing Service (MLS). Listing broker has attempted to offer accurate data but is not guaranteed accurate by the MLS. All information presented is deemed reliable but not guaranteed. IDX is provided exclusively for consumer's personal, non-commercial use; and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Any use outside of this purpose is prohibited.