Expect Higher Rates for Second Home Loans

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.