Skip to main content

Freddie Mac to Buyers: You Better Shop Around!

Apr 17, 2018
Ginnie Mae has announced that it had approved the inclusion of a servicing advance financing facility under its Acknowledgment Agreement program

Freddie Mac has a word of financial advice for potential homeowners: Don’t settle for one home loan quote.
 
In the latest edition of Freddie Mac Insight, the government-sponsored enterprise (GSE) insisted that 80 percent of borrowers who go that proverbial extra mile for an additional rate quote while shopping for a mortgage will save between $966 and $2,086 over the life of their home loan. Furthermore, Freddie Mac claimed the average expected savings rises to $2,914 if the borrower picks up five rate quotes, adding that 80 percent of borrowers who rack up five quotes will save between $2,089 and $3,904 on their home loan.
 
“By shopping more than one mortgage lender, consumers are more likely to get a better interest rate and save money in both the short and long term,” said Len Kiefer, Freddie Mac’s deputy chief economist. “With lower monthly payments and lower fixed fees, the loan will be more affordable and thus safer, and consumers may have hundreds or thousands of dollars more in their pockets. Not a bad return for a few phone calls or clicks.”
 
And it seems that more people will be in the market for a home loan this year. Separately, Fannie Mae reported that its Home Purchase Sentiment Index (HPSI) ticked upwards by 2.5 points in March to 88.3. The net share of respondents to Fannie Mae’s survey said now is a good time to buy a home was up by 10 percentage points from February while the net share who said home prices will go up in the next 12 months decreased three percentage points in March. The net share of respondents who believed mortgage rates will go down over the next 12 months increased 5 percentage points.

 
About the author
Published
Apr 17, 2018
These U.S. Metros Could Be First-Time Buyers' Best Chance To Close A Loan

Even among top 10 most affordable areas, home sale prices more than doubled in four, nearly doubled in another three since 2015

May 15, 2025
As HELOC Opportunities Grow, Angel Oak Completes Its First HELOC Securitization

$191M inaugural offering sees strong investor interest; company says it plans to package more HELOCs alongside Non-QM securitizations

May 15, 2025
DOJ Opens Criminal Investigation Into NY AG Letitia James Over Mortgage Fraud Claims

Investigation follows April referral by FHFA Director Bill Pulte; potential charges include wire, mail, and bank fraud

May 09, 2025
Origination Volume Up, But Rocket Sees GAAP Net Loss Of $212M For Q1 2025

Company highlights strength of strategic acquisitions, integrations, product innovations as it furthers its mortgage ecosystem

May 09, 2025
Guild Reports 35% YoY Originations Increase For Q1 2025 Amid Market Volatility

Company sees net loss of $23.9 million for quarter due to valuation adjustment on MSRs

May 08, 2025
NerdWallet Sees ‘Encouraging’ 23% Mortgage Revenue Bump For Q1 2025

Even so, company’s net income for the quarter falls 82% YoY to $0.2 million

May 07, 2025