Mortgage fees changing price of
home purchase
Source:
Informa Research Services
(01/28/2011) Fannie
Mae's new mortgage fees don't take effect until April 1, but they're already
having a significant impact on the price of home loans.
In an effort to tighten
restrictions and better securitize the loans it backs, Fannie Mae said it would
turn to risk-based pricing methods and implement more fees for riskier borrowers
beginning later this year, according to a report from Dow Jones Newswire.
However, that has made it harder for homeowners to qualify for loans they can
afford.
Homeowners
looking to save money on what they pay over the life of their mortgage may
benefit from checking the latest online
rate tables.
This will help them identify and track down the best local rates
available.
Prior
to the increases, consumers with a credit score of 700 would pay about $800 in
fees on a $200,000 home loan, the report said. Now, that figure has
doubled.
Les
Berman, a senior mortgage advisor in California, told the news source that many
individuals may now decide to hold off on applying for a loan until they can
boost their score, because even an increase from 675 to 680 can make a
difference in the approval process.Â
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