ATTENTION TO THOSE LOOKING TO PURCHASE A SECOND HOME IN THE NEAR FUTURE…
If you were considering buying a second home/vacation home, you may want to do it NOW.
Conventional loans on second homes closing in April 2022 and later will have a SIGNIFICANT pricing hit of as high as 4.125 points! In a lot of cases, Second Home rates have been the same if not very similar (currently 0 – 0.25 point add) to Primary Residence rates. What does that mean to you? An increase of 0.5%-1.5% in interest rate, and/or closing costs that are thousands higher. So this is a BIG CHANGE. Now rates are similar to Investment Property rates.
This is for loans delivered to Fannie and Freddie after April 1, which means lenders will likely start pricing this into their rates by early to mid-February for 30 day lock and later this month for 45 day locks or longer. Maybe sooner.
Bottom line: If you were looking for a condo at the beach or a house at the lake… BUY IT NOW!
Please feel free to reach out to me or your Re/Max Associated Realtor for more information.