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Disaster! Good Credit Rating Means You Pay for Risky Homebuyers
[Independent Sentinel] A new federal Biden rule will force homebuyers with good credit scores to pay higher mortgage rates and fees so they can subsidize people with riskier credit ratings who want to buy a home.It’s wealth redistribution and will be a disaster since risky homebuyers usually default. The feds will also temporarily ignore lenders’ debt-to-income ratio. It determines if homebuyers can afford to pay their mortgages each month. The fees are allegedly minimal for now, but you know how that goes. The fee changes will go into effect May 1 as part of the Federal Housing Finance Agency’s push for affordable housing for risky buyers. This will affect mortgages originating at private banks across the country. The federally backed home mortgage companies Fannie Mae and Freddie Mac will enact the loan-level price adjustments or LLPAs. Mortgage industry specialists say homebuyers with credit scores of 680 or higher will pay, for example, about $40 per month more on a home loan of $400,000. Homebuyers who make down payments of 15% to 20% will get socked with the largest fees, reports The Washington Times. Posted by: Besoeker 2023-04-20 |
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