• Facebook
    • Twitter
    • Instagram
    • YouTube
    • Pinterest
          888-666-0844

Mountain Living Real EstateMountain Living Real Estate

Your Source for Summit County Real Estate

  • Search
    • Our Listings
  • buy/sell/rent
    • Buyers
    • Sellers
    • Renters
    • Property Management
  • Communities
    • Breckenridge
    • Copper Mountain
    • Dillon
    • Frisco
    • Keystone
    • Silverthorne
    • Park County
  • Blog
  • About
    • Client Testimonials
    • Contact

Interest Rates on Second Homes Jump in an Instant

a dog jumps up like the interest rates on second homes

Freddie Mac & Fannie Mae recently made some changes to their loan requirements that impacts what loan products are readily available to consumers. One of those changes is making interest rates on second homes jump and another may make investment property loans more difficult to get. Second homes make up a huge portion of the Summit County real estate market. In addition to that, 75% of buyers get loans on the Summit County home they are buying. These Fannie & Freddie changes are huge in our market.

How mortgages work

After a lender gives you a mortgage to buy your home they often times will sell your loan to the government entities, Fannie Mae & Freddie Mac. The lenders don’t want to have to keep that loan on their books and have deposits and income to cover it. In order for Fannie & Freddie to buy that loan, it has to meet certain requirements. As a result, lenders have to use Fannie & Freddie requirements when they make loans so they have the assurance they can sell it and it won’t remain on their books.

Changes to Fannie & Freddie requirements

Fannie and Freddie recently changed their requirements for loans they will buy. These changes will be reflected in every banking institutions’ available products if they plan to sell those loans. One change limits the percentage of second home and investment property loans a lender can give. If a lender’s numbers don’t line up with those numbers, lenders have to change how they lend or come up with portfolio products that they can put their customers into. Portfolio products are loans the lender will keep on their books and not sell off. Some lenders are even electing to change their percentage of second home/investment loans by no longer offering loans on investment properties.

The second change is interest rates on second homes and investment properties. In the past, interest rate on second homes would be only slightly higher, if not the same, as for primary residences. Now it will have to be higher, approximately 1% higher. That will impact the affordability factor for second homeowners.

Impact on the Summit County real estate market

The market is strong enough and interest rates are so low now, I think these changes will have minimal impact on the Summit County real estate market. As rates increase or market demand decreases, that higher interest rate may have more impact on buyers.

Utilize our mortgage calculator to find out what impact a change in interest rate will have on your monthly payment.

Posted in: Buyer Tips Tagged: Interest Rates, Lending, Mortgage, Second Home

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Post navigation

« Incredible Residential Sales Again! March 2021
Summit County Loosens Covid Restrictions Again »

About Us

Mountain Living Real Estate, a.k.a. The Mountain Living Team, is a family owned, second generation, real estate company that has been helping buyers and sellers in Summit County since the early 90’s.  Mountain Living Real Estate is committed to going above and beyond to ensure their clients have the most amazing real estate experience possible.  Jason & Meredith take a personal approach to educate their clients, empowering them to make high quality decisions no matter the situation.  They take exceptional care throughout the sales process and beyond; striving to make each client’s path in Summit County one filled with fun, excitement & great memories.

Work with Mountain Living Real Estate and you’ll understand why so many people say, “We Love Mountain Living!”

Testimonials

We were most impressed with their team work and insights. We enjoy working with Jason & Meredith. We trust them and know we can count on them. This is our 6th transaction with Mountain-Living!

David from Evergreen June 16, 2022

Read More Testimonials

Brad was most impressed with Jason for his honesty. He could think of nothing that he should or could have done to make the transaction better.

Brad from KS May 3, 2022

Read More Testimonials

Contact Us


Jason and Meredith Adams

Jason & Meredith Adams
Mountain Living Real Estate

101 Main St, #109, PO Box 4115 Frisco, CO 80443

(888) 666-0844
team@mountain-living.com

  • Facebook
  • Twitter
  • Instagram
  • YouTube
  • Pinterest

Jason & Meredith Adams are both licensed to sell real estate in the state of Colorado

© 2023 · Equity Framework
© 2023 · Mountain Living Real Estate, Inc.
 

Privacy Policy · Sitemap
Listings Sitemap · Log In