Rates will be increasing April 1st for some applicants…..
Fellow mortgage blogger Dan Green does a good job of explaining why mortgage rates will increase for some mortgage applicants beginning April 1st in THIS POST.
Why will this happen?
Fannie Mae & Freddie Mac apply “loan-level pricing adjustments” to mortgages that have certain characteristics which are deemed “riskier”. 
The result is that applicants whose mortgage application contact these “riskier” aspects end up paying slightly higher interest rates OR higher closing costs to obtain the same rate as a person who doesn’t have these factors. Every 5 months Fannie Mae & Freddie Mac modifies these pricing adjustments and most people believe that they will go up on April 1st.
Who will be impacted?
As Dan Green points out in his post, those who are applying for a mortgage with the following characteristics will be impacted:
- Living in a condo with less than 25% equity in the home
- Having a credit score of less than 740
- Living in a 2-unit, 3-unit or 4-unit home
- Using a home as an investment property
- Doing a “cash out” refinance with less than 40% equity in the home
- Having a second mortgage to subordinate