Mortgages Fees Are Going Up!
Fannie Mae and Freddie Mac are raising what they call “risk fees”* to lenders and borrowers with good credit. It doesn’t matter if you have good credit and pay all your bills on time. It doesn’t matter if you have a good job. It doesn’t matter if you make a fabulous salary. You will pay more money now if you are in any of the categories below.
What does this MEAN to you as a future home buyer – borrower?
1. If you have a FICO score of 739 or below you pay a “risk fee”.
2. If you don’t have a 25% down payment you pay a “risk fee”.
3. If you want a loan over 15 years long you pay a “risk fee”.
4. If you have a FICO score of 740 or above you probably will pay a “risk fee”.
When you plan for your new home be sure to put a little more to the side for all the increase in fees implemented over the past few years. The good part is it may be tax-deductible so check with your accountant.
Finding a new home might cost more money, but it can be tedious too during the search process. If you want to get a leg up on looking for your new home going online is a smart move. You can search for homes if you want right here. See the Quick Search box over on the right? When you fill in those boxes with the criteria you are looking for in a home it will search the MLS for you and give you all the homes for sale on the market today. Try it because it’s Free and comes with no obligations.
* Risk–free interest rate is the theoretical rate of return of an investment with zero risk, including default risk. The risk free rate represents the interest that an investor would expect from an absolutely risk-free investment over a given period. Therefore, a rational investor will reject all the investments yielding sub-risk-free returns.
