re: Paging all Real Estate Investors - Topic: Mortgages

My mortgage guy said the interest rates for second/investment homes are going to be extremely variable since the changes last month. Basically, Freddie/Fannie have capped the percentage of these types of mortgages for companies. So if a mortgage company is at their 10% cap, they basically don’t want anymore investment home mortgages and will raise rates to drive business away. You will only see a low rate if they somehow drop below their cap percentage. This is how it was explained to me before I locked in 2.5% on a second home last month. I was told to expect it would be 1-2 percent higher if I didn’t lock it before the fed changes kicked in.