Mortgage fees can change for a variety of reasons, including changes in interest rates, changes in the lender’s policies, or changes in government regulations.
I’m going to go over the specific examples of how mortgage fees can change and what’s going with the mortgage changes today.
But before we get into all of that.
Allow me to reintroduce myself my name is DeVaughn Put in Work Burke for TheWealthbuilderz.com and co owner of The Wealthbuilderz Solutions LLC. if you love content like this video and talking about making more money, saving more money and building a better you and business. Then go ahead and subscribe to this blog.
Here are some specific examples of how mortgage fees can change:
1. Interest rates: When interest rates go up or down, it can affect the fees associated with a mortgage. For example, if interest rates increase, a lender may charge higher fees to offset the additional risk associated with lending money.
2. Lender policies: Lenders may change their policies and fees for a variety of reasons, such as changes in the economy, changes in competition, or changes in the housing market. For example, a lender may increase their fees for certain types of mortgages if they are trying to limit their exposure to risk.
3. Government regulations: Changes in government regulations can also impact mortgage fees. For example, new regulations may require lenders to conduct additional inspections or require borrowers to pay for additional insurance, which could increase the fees associated with a mortgage.
It’s important to keep in mind that mortgage fees can vary widely depending on the lender and the type of mortgage. When shopping for a mortgage, it’s important to compare the fees and rates offered by different lenders to ensure you’re getting the best deal possible.
So now that we know why this happens. Lets talk about changing the mortgage rates on May 1 and for the for seen future.
As per US Today starting May 1, upfront fees for loans backed by Fannie Mae and Freddie Mac will be adjusted because of changes in the Loan Level Price Adjustments (LLPAs), the fees that vary from borrower to borrower based on their credit scores, down payments, types of home and more. The changes relate to credit scores and downpayment sizes. In some cases, people with higher credit scores may end up paying more while those with lower credit scores will pay less.
For example, if you have a score of 659 and are borrowing 75% of the home’s value, you’ll pay a fee equal to 1.5% of the loan balance. Before these changes, you would have paid a 2.75% fee. On a hypothetical $300,000 loan, that’s a difference of $3,750 in closing costs. On the other end, if you have a credit score of 740 or higher, you would have paid a 0.25% fee on a loan for 75% of your home value before May 1. After that date, you could pay as much as 0.375%.
This is seems to be a penalty for people with good credit and good credit buyers are paying for other folks bad money decisions. This might cause a down turn In the real estate market in the long run because buyers with good credit might not want to pay those extra fees and end up just renting.
We’ll see. Either way you still need to have good credit and I have solutions to help you do this and get on the right track with building your personal credit.
If interested check out the link below and get started today.
Until next time Wealthbuilderz it’s the man the myth
DeVaughn Put In Work Burke
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Mortgage fees are changing May 1st Here is The Low Down