What you need to know about Loan Level Pricing Adjustments (LLPA)
Posted on May 23, 2023
You might have heard in the news that it has become more expensive for some borrowers to obtain a mortgage. At County Bank, we believe in educating our borrowers and being fully transparent about what factors into closing costs and interest rates and we wanted to break down some of the information you may have heard.
As a result of the housing crisis in 2008, Government Sponsored Enterprises, Fannie Mae and Freddie Mac, imposed loan-level pricing adjustments, known as LLPs, which are fees charged to mortgage borrowers who obtain conventional mortgage loans. LLPA’s are calculated based on various factors, including credit score, loan to value, and type of collateral (i.e., single-family home, multi-family home, condo). LLPAs can be paid by the borrower in the form of fees added to the closing costs, or fees can also be factored into the interest rate and paid over the course of the loan.
Country Bank offers various products that do not have these LLPA fees. We would be happy to review all of our mortgage products to ensure that the one you select is best suited for your lending needs. Don’t hesitate to contact our Loan Officers with any questions; we’d welcome the opportunity to make a difference in your homebuying experience.
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