In this video, Bob Sophiea and Eric Kimble share some information that might help when making a decision to buy a vacation home this year.
Bob Sophiea :
I’ve got Eric Kimble here from Hometown Lenders. I’m Bob Sophiea with New Home Collective. I brought Eric here because he’s my trusted advisor on everything financial and when it comes to mortgages, I don’t think there’s anyone that knows more than him.
So Eric, what’s the deal, man. Should you buy a second home in 2022? What’s coming down the pipe? What are you hearing about? What’s happening with Fannie Mae and Freddie Mac?
Eric Kimble :
If you guys have followed us at all, you know that we get all these guideline changes this time of year and everybody’s kind of buzz about it. Well, Fannie Mae and Freddie Mac just came out and said, April 1st, the second home mortgages, the rates are going to jump. They’re doing what’s called loan level price adjustments. Right now a second home rate is the same as a primary interest rate for primary residents. So very, very good. Okay. No hits. Well, starting April 1st, you’re going to see-
Bob Sophiea:
April 1st of this year?
Eric Kimble :
April 1st of 2022. You’re going to see a significant jump to that price of that house payment when you go to buy it, just because of that. There’s a lot of talk about Fannie and Freddie backing out of the second home market going from 10% down to 20%.
Bob Sophiea:
Why would they back out of the second home market? Isn’t that like, I’ve seen statistics that show that second homes like last year were up a hundred percent over-
Eric Kimble :
Well and that’s the issue that Fannie and Freddie are talking about. Fannie and Freddie was taken over by the government during the mortgage crash and they spurred the economy by issuing those second mortgage homes, but they’re a government entity and they’re not there to let rich people buy vacation homes. We’ve heard that time after time after time and so we’re seeing some retracing of that and everybody in my industry is talking about the fact, are they going to retrace back to where they were before 2008, where you couldn’t buy a second home on a fixed interest rate? You know, does it go back that far? This is the first step. If I’m buying a vacation home which I am right now, I went ahead and bought one in Florida. Based on this news, I made the jump and went ahead and bought one myself.
Bob Sophiea:
Wow.
Eric Kimble :
Okay. So this is a pretty big deal for guys that are in the business, make the jump. Everybody else should follow.
Bob Sophiea:
If you’re looking to buy a second home in 2022, you know how to get a hold of me. I’m also going to put Eric’s information there. Now, it doesn’t matter where you’re trying to buy that second home. Anywhere in the world, I should be your first contact. Get a hold of me and I can point you in the right directions and Eric, he is probably the second call.
Eric Kimble : (laughs).
Bob Sophiea:
Maybe the first, I don’t know. Call us. Hopefully this information was valuable to you and if it is make sure you see something. We’ll talk to you soon.
Eric Kimble :
All right. Thanks guys. Bye.
For more Real Estate advice, feel free to contact:
Bob Sophiea
Bob@nhcnow.com
859-433-3743
Eric Kimble Hometown Lenders
859-221-1782
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