Freddie Mac to Buyers: You Better Shop Around! – NMP Skip to main content

Freddie Mac to Buyers: You Better Shop Around!

Phil Hall
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.

 
Published
Apr 17, 2018
Homeward Lays Off 20% Of Staff

Alternative real estate financing company cut about 120 jobs.

Industry News
Aug 12, 2022
Lone Peak Lending Joins Panorama Mortgage Group

Names Donovan Stamps as president.

Industry News
Aug 11, 2022
Fairway Independent Mortgage Hires Former PrimeLending President

Firm says Scott Bristol is part of aggressive originator expansion.

Career
Aug 11, 2022
Mortgage Rates Jump Back Above 5%

Freddie Mac says rates recent volatility continues.

Industry News
Aug 11, 2022
Redfin: Share Of Relocating Buyers At All-Time High In July

People are looking for less expensive and better lifestyles.

Industry News
Aug 11, 2022
Redfin Expands iBuying Business To Florida

RedfinNow, which makes cash offers for homes, now operates in 34 markets in 16 states and the District of Columbia.

Tech
Aug 11, 2022