This is a YouTube video titled "🚨 New Rule on Second Homes 🚨" containing a monologue or presentation from January 5, 2022, explaining recent changes by Fannie Mae and Freddie Mac regarding loan level price adjustments for second homes or vacation properties, focusing on down payment requirements and their impact on interest rates and monthly payments.
So it always used to be. As long as you put a minimum of 10% down in your second home or vacation property, you got a great rate right in line with the prime rates of the market at that time. Worst case, maybe take a hit of an 8. As of April 1, Fannie and Freddie announced with up to 15% down, people will take a 4% loan level price adjustment hit. I'm going to show you what that means. Half percent difference in loan level price adjustment moves the interest rate a notch. 4% difference moves the interest rate a whole percentage point. That could be hundreds of dollars a month tacked on to people's payments. More down payment eases up on this rule, but you can see the intention's clear. They want to slow down. Second home of the.
