04/29/2023
New Loan Level Price Adjustments (LLPA’s) for conventional mortgages have been all over the news recently. They go into effect officially May 1, 2023, however most lenders have already implemented them into their mortgage pricing as of some time mid-April. Also, these changes were announced much earlier in the year so they wouldn’t be a surprise when they officially went into effect. A common misconception we’ve heard is that buyers with good credit and bigger down payments will pay a higher interest rate than low credit, low down payment buyers…that is FALSE… The new changes just mean that the spread between lower credit score, lower down payment pricing is shrinking vs. higher credit score, bigger down payment scenarios compared to the old LLPA’s. It definitely doesn’t mean someone with a 600 credit score will get a better rate than someone with an 800. Needles to say, keep paying your bills on time and save as much as possible, lol. Here is a chart that’s show’s the changes, old LLPA vs. new LLPA. As always, please reach out with any questions/concerns and we’d be happy to do a custom quote for your exact scenario and give you all options available. 847-722-1775
