One thing that nobody on the national level has discussed yet (as far as I can find) is the critical change in qualification requirements from Fannie Mae and Freddie Mac on interest rates for mortgages. Officially effective on March 1st, but in practice in most cases already, banks are going to begin providing interest rates based on customers' FICO credit scores. Our in-house mortgage representatives from William Raveis provided us with a sample breakdown this morning which I will provide below:
The score categories are:
FICO below 620
620-639 FICO
640-659 FICO
660-679 FICO
The way this translates on a sample 6.125% rate is:
FICO below 620 - sample rate would change to 6.625% with one point being purchased
620-639 FICO - sample rate would change to 6.625% with 3/4 of a point being purchased
640-659 FICO - sample rate would change to 6.5% with 1/2 of a point being purchased
660-679 FICO - sample rate would change to 6.5% without any points being purchased
680 FICO and up - sample rate would apply
This is all pretty complex for a first-time home buyer to understand when they are not being advised by a strong mortgage professional. We will also see additional changes in the requirements for condominium association reviews by lenders. I will discuss those tomorrow.
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- The Brookline Connection
- Greg Kiely has found a special home in Brookline, and he enjoys nothing more than helping others discover the numerous advantages offered by the community. Drawing on his in-depth knowledge of the area, Greg is fully committed to making your buying or selling experience a complete success. Greg is a REALTOR at William Raveis Real Estate in Brookline and is the former listing agent for The Warwick at Coolidge Corner as well as many other properties in and around Brookline. Greg lives on Winchester Street in Coolidge Corner with his English Cream Golden Retriever Tessie.
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