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Meet Bill Rapp

NMLS ID # NMLS # 228246

William Rapp, based in Houston, TX, US, is currently a Capital Advisor at Medallion Funds, bringing experience from previous roles at eXp Commercial, NEXA Mortgage, Viking Enterprise LLC and Sun Realty - Houston. William Rapp holds a 1997 - 2001 BBA in Finance @ Texas A&M University. With a robust skill set that includes REO, Sellers, SFR, FHA financing, Reverse Mortgages and more, William Rapp contributes valuable insights to the industry.

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Great experience purchasing our first home! Bill was easy to reach and always able to answer any questions or concerns.

27185 Astoria Brook Ln, Katy, TX 77494, USA

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💸 How LLPAs Impact Your Mortgage Rate & Costs 📊

📑 Loan Level Price Adjustments Explained: What Homebuyers Need to Know 🏡

Bill Rapp, Commercial Mortgage Broker

September 02, 2025•2 min read

📑 Loan Level Price Adjustments Explained: What Homebuyers Need to Know 🏡

💸 How LLPAs Impact Your Mortgage Rate & Costs 📊

📑 Understanding Loan Level Price Adjustments (LLPAs)

When applying for a mortgage, many borrowers are surprised to learn that their interest rate isn’t only based on market conditions—it’s also shaped by something called Loan Level Price Adjustments (LLPAs).

LLPAs are risk-based pricing fees set by Fannie Mae and Freddie Mac. They adjust the cost of a mortgage depending on the borrower’s risk profile. Think of LLPAs as a way lenders balance risk when offering home loans.

🔍 What Triggers LLPAs?

Several factors can increase or decrease LLPAs, including:

· Credit Score: Lower scores generally lead to higher LLPAs.

· Loan-to-Value Ratio (LTV): Higher down payments often reduce LLPAs.

· Property Type: Condos, multi-unit homes, or investment properties may carry additional LLPAs.

· Loan Purpose: Cash-out refinances usually come with higher adjustments.

· Occupancy: Primary residences usually get lower LLPAs compared to second homes or investment properties.

📊 Why LLPAs Matter for Homebuyers

LLPAs directly impact your mortgage interest rate and closing costs. For example, a borrower with a high credit score and strong down payment will pay less in LLPAs than someone with weaker credit and minimal down payment.

Even a small difference in LLPAs can add up to thousands of dollars over the life of your loan. That’s why understanding these adjustments is crucial when planning your home purchase or refinance.

🛠️ How to Reduce the Impact of LLPAs

Here are a few strategies to minimize LLPAs:

1. Improve Your Credit Score – Pay down debt and keep credit utilization low.

2. Increase Your Down Payment – A lower LTV reduces LLPAs.

3. Consider Loan Programs – VA, FHA, or specialty loan products may avoid or reduce LLPAs.

4. Work With a Mortgage Broker – Brokers can shop multiple lenders to find the best pricing.

✅ Bottom Line

LLPAs may seem like “hidden fees,” but with the right preparation, you can position yourself for better rates and lower costs. Whether you’re buying your first home, refinancing, or exploring investment properties, working with a knowledgeable mortgage advisor ensures you’re not overpaying because of LLPAs.

👉 At Medallion Funds, we help clients understand all the details behind their mortgage—including LLPAs—so you can make smarter financial decisions.

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Bill Rapp - Commercial & Residential Mortgage Broker

Whether you're a first-time homebuyer, a seasoned investor, or a business owner with ambitious plans, securing the right financing is crucial. At Medallion Funds, we take the guesswork out of mortgages, offering a comprehensive suite of residential and commercial loan options to fit your unique needs. Looking for Your Dream Home? We understand the excitement and challenges of navigating the residential real estate market. Our experienced mortgage brokers will guide you through every step, from pre-qualification to closing. We offer a variety of loan programs to suit your financial situation, including: • Fixed-rate mortgages: Offering stability with predictable monthly payments. • Adjustable-rate mortgages (ARMs): Providing competitive rates for a set period. • FHA loans: Making homeownership accessible with lower down payments. • VA loans: Rewarding veterans with attractive rates and flexible terms. Investing in Your Business Future? Growth often requires capital, and we can help you unlock the potential of your commercial property. Our brokers specialize in a wide range of commercial loan options, including: • Purchase loans: Financing the acquisition of new buildings or land. • Construction loans: Facilitating the development of your project. • Refinance loans: Restructuring your existing mortgage for better terms. • SBA loans: Providing access to government-backed financing for qualified businesses. The Medallion Funds Difference: We go beyond simply finding a loan. We take the time to understand your goals and develop a personalized strategy. Here's what sets us apart: • Expertise: Our brokers have a deep understanding of both residential and commercial lending. • Competitive Rates: We leverage our strong lender relationships to secure the best possible terms. • Streamlined Process: We handle the paperwork, keeping you informed every step of the way. • Exceptional Service: We're committed to providing you with a positive and stress-free experience. Ready to Take the First Step? Contact Medallion Funds today for a free consultation. Let's discuss your financing needs and help you achieve your dreams!

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