The Federal Housing Finance Agency announced that the cost to finance second homes is going up. Fannie and Freddie second home rates are usually priced like a primary residence — but now, the interest rate on a second home will be closer to an investment property interest rate. That is a meaningful increase.
What does this mean?
Those interested in buying a second property should expect higher interest rates and make sure to revise their budgets and plan accordingly. For borrowers who already have a second home loan in process, now is the time to take action and finish the transaction! A missed closing date could lead to an expensive lock extension.
As always, we’re here to help your homebuying dreams become a reality. Reach out to discuss these changes, and how they might impact you, with a qualified Sente Mortgage Banker.