Looks like lawmakers found a clever way to recover some of the revenue lost from extending the payroll tax-cut—to increase the cost of home mortgages!
The FHFA will require lenders to hike certain loan fees. Those fee increases will be passed on to YOU, the borrower, in the form of higher rates.
Remember, this is exactly what happened when the Dodd-Frank Bill became effective last year on April 1st!
“Smart Moves” That SAVE You Money!
FYI: Fannie and Feddie don’t issue mortgages; they buy loans from lenders and sell them to investors as securities. To protect investors, Fannie and Freddie then charge lenders “guarantee fees” or “g-fees” to cover and defaults.
This fee increase only affects mortgages backed bty Fannie and Freddie. Raising their loan guarantee fees could steer more borrowers to seek Federal Housing Administration (FHA) loans.
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