TOLEDO, Ohio — Fees on mortgages that are backed by Freddie Mac and Fannie Mae are set to change.
It's new plan is designed to make homeownership more affordable for more people. The fees will go down for many with lower credit scores and will increase for many with higher credit scores.
That doesn't mean people with lower credit scores will pay less than those with higher credit scores. The changes mean that people with higher credit scores will still pay less based on lower risk to the lenders - but having a lower credit score will now come with less of a penalty.
There are many variables that go into the cost of a home loan, including what kind of property you are buying, how much money you're putting down and how high or low your credit score is.
"If somebody has a lower credit score and is wanting to put minimal down, you can expect they're going to get a higher rate than if they would put more down with that lower credit score - and vice versa with people with a good credit," said Al Mehdi, senior loan officer. "I don't want you to think that it's horrible for these guys that are having great credit, they're still going to be better than not having that good credit."
For more information on the new mortgage fee change, click here.
If you are in need of a loan officer to help you understand the change, you can contact a senior loan officer directly at their work number at (727)-252-8747 or email at Amehdi@grande-financial.com.