Hi, I’m Warren Oberholser. I’m a realtor in the East Bay Tri-Valley area in Northern California. My goal is to help both buyers and sellers get maximum results for one of their biggest investments, their home.
August 20, 2020: Hey, I just got off the phone with Brian LeBars from Vintage Home Loans in Pleasanton.
Apparently last week, there’s a new tax that just hit and it may affect some of you, especially on your closing costs.
Below is my phone conversation on 8.20.2020 with Brian LeBars from Vintage Home Loan in Pleasanton, CA, regarding the new loan fee.
Brian LeBars: Yeah, absolutely, Warren. Without warning, both Fannie Mae and Freddie Mac basically set a new “tax” which is basically a pricing adjustment to all refinances across the board. So what this means and how it affects the general consumer is simple. Essentially, it’s affecting the consumer by creating a .5% Or half the point of the loan amount on each transaction, which means it’s going to cost the consumer more money.
Warren: Is that going to make it then harder for somebody to qualify?
Brian LeBars: You know, Warren, I wouldn’t say it makes them harder to qualify. However, it is a cost, meaning that it will either be financed over the life of the loan or it means that it will be more expensive for the clients to close the loan, meaning more out-of-pocket costs.
Warren: So you can run, but you can’t hide. You either pay now or pay later.
Brian LeBars: Right.
Warren: Brian, what type of loans will this affect? Like conventional, FHA, VA? Can you explain that, please?
Brian LeBars: Yeah, Warren. Currently, right now it only affects conventional. It does not affect FHA or VA. So it’s all your traditional standard Fannie Mae and Freddie Mac products whether it be 20% down to 3% down. Typically, it’s affecting all those specific types of loans.
Warren: Brian are interest rates still good? And given all this information, what’s the bottom line?
Brian LeBars: Yeah, Warren, I got to say interest rates are still great. I mean, in my 19 years of doing business, there’s still an unbelievably all-time low. So I come down on what’s your bottom line, and the bottom line is real estate is still the greatest form of wealth creation. Yeah, take advantage of it when you can.
Warren: When you think about these interest rates, they are just unheard of, if you go back what? 10 years even. And I’ve been a homeowner for almost what? 33 years.
Brian LeBars: Yeah.
Warren: I think when we first purchased my home, this was before the savings and loan debacle, I purchased it in ’88 and then my interest rate at the time was 17%. And I remember hearing that was a good interest rate.
So again, this is brand new information. To find out more, please reach out to Brian LeBars directly at Brian LeBars Vintage Home Loans.
Thanks, Brian, for the update. Please post any questions or comments for Brian below. Now that you’ve watched this video, you may want to watch these other related ones.
I hope you enjoy this article. Please email me any questions you may have. [email protected]
About Warren Oberholser:
Hello…I work with both buyers and sellers in the Tri-Valley area of Northern California. The Tri-Valley is comprised of 6 cities: Pleasanton, Livermore, Dublin, San Ramon, Danville, and Alamo. To better understand what each city has to offer, I have created a Pros and Cons video and BLOG for each – (Pros & Cons for Pleasanton, Pros & Cons for Livermore, Pros & Cons for Dublin, Pros & Cons for San Ramon, Pros & Cons for Danville and Pros & Cons for Alamo). If you are thinking about purchasing or selling a home, please reach out to me by text, phone, or email. If it is convenient, I can schedule a Zoom chat so we can discuss your home goals. Wishing you all the best on your home journey. Cheers!
It’s August 20, 2020, and it’s time for the weekly Mortgage Market Update. As promised, here is my weekly mortgage market update with Brian LeBars from Vintage Home Loans in Pleasanton, California
#newtaxlaw #newtaxfee #newrefinancefee
Vintage Home Loans An Equal Housing Lender CA Department of Real Estate License #01715112 & #02072832
344 Division St., #100
Pleasanton, CA 94566
DRE # 01861944
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