(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.
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