Cash Out Refinances Are More ExpensiveIn 2022 Fannie/Freddie increased LLPAs (loan level price adjustments) for cash out refinances, making it more costly to pull cash out.Freddie Mac announced for 2023 a seasoning period of 12 months before cash can be pulled out of a property (note date to note date) to pay off a mortgage. When one agency makes an announcement the other follows, so consider this a Fannie/Freddie thing. Twelve months seasoning affects a cash out Fannie/Freddie loan, one can do a limited cash out (rate/term) after six months. While these changes make cash out more costly, FHFA (regulator of Fannie/Freddie) announced improvements for costs affecting first time buyers utilizing Home Ready or Home Possible type loans. This change is most helpful for those in the lower inc...
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