Delaware mortgage rates will be increasing in the first quarter of 2012 for all conventional loans backed by Fannie Mae and Freddie Mac because of the bill to extend payroll cut extension for two months. Two-month extension costs borrowers for the next 10 years! You need to act fast to avoid the interest rate increase, call now at 302-703-0727 or APPLY ONLINE to avoid paying this higher rate.

The U.S. Congress recently passed a two-month payroll tax cut extension. The $33 billion packages are funded by a 10-year increase in the Guaranty Fees that Fannie Mae (Fannie) and Freddie Mac (Freddie) charge lenders to guarantee home loans.

This change is effective for all loans delivered to Fannie and Freddie at the beginning of the second quarter of 2012. For example, the cost of a $200,000 mortgage will go up about $11 per month. Over the life of the loan, these costs are anticipated to be about $4,000.

These changes will also increase the cost of FHA and VA loans. However, the government has not released information as to the timing of these changes.

All lenders by law will be adding this increase to their pricing which means your mortgage interest rate will be increased to pay for this fee increase.

If your customers want to avoid these additional costs they’ll need to act soon. If you have been sitting on the fence, call me now at 302-703-0727 to find out how best to avoid these higher mortgage costs or APPLY ONLINE now.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713