If you have a good credit score and are looking to buy a home, you may be required to pay more to subsidize other home buyers who have bad credit thanks to a new rule from the Biden Administration.
Starting May 1, a new federal rule will force homebuyers with good credit scores to pay higher mortgage rates and fees to subsidize those with riskier credit ratings who are also buying houses.
The Federal Housing Finance Agency’s push for affordable housing has led to the introduction of loan-level price adjustments (LLPAs) that will be enacted by Fannie Mae and Freddie Mac, affecting mortgages originating at private banks across the US.
Homebuyers with credit scores of 680 or higher will pay around $40 more per month on a $400,000 home loan. Homebuyers who make down payments of 15% to 20% will face the largest fees. The new fees will only apply to Americans buying houses or refinancing after May 1.
The Washington Times was the first to report on the new rule.
The new FHFA rule inverts the typical use of credit scores in free market economies.
Traditionally, those with better credit scores could expect to pay less for debt because financial institutions consider lending to them less risky.
For those looking for more information on the topic, here are the new schedules for mortgage rates and costs based on credit scores.
Here’s the old schedule:
Here’s the new schedule:
<span class="dsq-postid" data-dsqidentifier="19037 https://www.themainewire.com/?p=19037">15 Comments
This article provides clear idea in favor of the new users of blogging, that actually how to do blogging.
I savor, lead to I found exactly what I used to be looking for.
You have ended my 4 day lengthy hunt! God Bless you man. Have a great day.
Bye
my page get better at snooker
I real glad to find this website on bing, just what
I was searching for 😀 bessides saved to bookmarks.
Also visit my webpage pro billiards tips (Lily)
Spot on with this write-up, I seriously think thiis
web site needs far more attention. I?ll probably be back again to read more, thanks for the information!
my page … collegiate game room (Hilario)
Yes! Finally something about 8-ball billiards.
my wsbpage pool cues
I am glad to be a visitant of this complete website, regards for this
rare info!
Take a look at my web-site minnesota fats pool table – Mckenzie,
I’ve been absent for some time, but nnow I remember whyy I used too ove this website.
Thank you, I will try and check back more often. How frequently you update
your web site?
Visit my blog :: board game – Mack –
I need tօ to thank yоu for thiѕ fantastic reaɗ!! I
absolutely enjoyed eᴠery bіt of іt. I’ve got
yоu saved ɑs a favorite to check out neᴡ tһings you post…
Ηere is my рage; lotto, Eusebia,
Goood post. I’m dealing with a few of these issues as well..
Look into my web page: cue tips (Kina)
This excellent website really has all of the info I wanted
about this subject and didn?t know who to ask.
my web page … Billiards
Ater looking at a number of thee articles on your website,
I really appreciate your way off blogging. I saved it to my bookmark website list and will be checking back
soon. Take a look at my web site too and let me knw your opinion.
Look at my web-site; table tennis conversion (Paul)
This is a very good tip particularly to those new to the blogosphere.
Brief but very precise info? Thank you ffor sharing this one.
A must read article!
Feel free to surf to my website – home renovations tips [Armando]
You goot a very wonderful website, Gladiola I noticed it through yahoo.
Also visit my webpage: pool sharking
This info is worth everyone’s attention. Where can I
find out more?
Feel free to visit my site … denver billiards, Charla,
Thaank you for the gold writeup. It in fact was a amusement account it.
Look advanced to more added agreeable from you!
By the way, how could we communicate?
My blog; pool supplies (Fran)