Homebuyers with good credit scores will soon encounter a costly surprise: a new federal rule forcing them to pay higher mortgage rates and fees to subsidize people with riskier credit ratings who are also in the market to buy houses.
The fee changes will go into effect May 1 as part of the Federal Housing Finance Agency’s push for affordable housing, and they will affect mortgages originating at private banks across the country. The federally backed home mortgage companies Fannie Mae and Freddie Mac will enact the loan-level price adjustments, or LLPAs.
Mortgage industry specialists say homebuyers with credit scores of 680 or higher will pay, for example, about $40 per month more on a home loan of $400,000. Homebuyers who make down payments of 15% to 20% will get socked with the largest fees.
This is going viral as people that don’t understand mortgage pricing, nor the business, try to politicize the issue and perpetuate that some groups get free handouts. 😂😂😂
That is good to know, thanks for the info guys! I hope my question wasn't a harbinger of ideas to come, can totally see them forcing lenders to add some kind of monthly fee for existing mortgages down the road. Fucking Cock-a-Roaches.
I am not able to do a deep dive on this, is this for new borrowers only or is this fee to be applied to all existing mortgages?