Congressional action raises interest rates..

If you are thinking of a refinance or for that matter a home purchase, now is the time. Conforming prices will increase based on recent Congressional action.

Freddie Mac and Fannie Mae are increasing their guarantee fee effective with April settlements which will worsen pricing. In order for a loan to meet the April settlement requirement it must fund prior to February 29th 2012.

The guarantee fee increase will worsen prices up to 80 basis points (8/10 of 1%) depending upon the note rate. Some lenders are staggering the increase based upon when the loan is locked in an effort to offer lower rates to consumers in the market for as long as possible.

If you are considering a refinance or purchase do it now if you can . Although interest rates remain at record lows there's no telling how long they will remain low and with this announcement we know that the cost of obtaining financing will increase.

Please note that the guarantee fee increase does not impact government loans. For more details on this and any other financing options please call Brian Leavitt at Northstone Mortgage.