![]() Even though we’re not fans of I-love-debt-whoops-credit scores, we see how it would sting to pay fees for having good credit. If it does, that’s a clue you might not be in the best financial position to buy a house.īut still. And the truth is, an extra $30 or $40 a month shouldn’t make a huge impact on your home-buying decision. The new mortgage fees basically work out to a $10 difference (either higher or lower depending on your credit score and down payment) for every $100,000 of home loan value. (Based on a $400,000, 30-year loan.) 1ĭave Ramsey recommends one mortgage company. That translates into a monthly mortgage payment that’s about $40 higher under the new structure. ![]() In fact, a home buyer with a 740 credit score and a 15–20% down payment will have an interest rate about a quarter of a percent higher than they would have before the fee change. Yep, the FHFA’s mortgage rate pricing penalizes home buyers who have worked hard, handled their money like responsible adults, and saved for a down payment. And how did it decide to cover the cost of helping riskier borrowers get loans? It raised fees on people with good credit and larger down payments. On May 1, the FHFA changed its mortgage fee structure for Freddie Mac and Fannie Mae (government-funded mortgage lenders) to make it easier for borrowers with low credit scores and low down payments to get a loan. If you’ve got a paycheck and a pulse, we’re gonna help you get a house! Federal Housing Finance Agency (FHFA) is sounding like a used-car salesman these days.
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