Middle-Class Homeowners Alert: New Fannie and Freddie Fees Could Impact You!
If you are a middle-class homeowner, you should be aware of changes to the way Fannie Mae and Freddie Mac are assessing fees. These changes could potentially have a significant impact on you. In this article, we’ll explain what’s going on and how it could affect you.
Understanding Fannie Mae and Freddie Mac
Fannie Mae and Freddie Mac are two government-sponsored enterprises (GSEs) that buy mortgages from lenders. They then package these mortgages into securities that can be sold to investors. Fannie Mae and Freddie Mac are responsible for about 70% of the mortgages in the US.
The New Fees
Recently, Fannie Mae and Freddie Mac have announced a new set of fees that will be applied to mortgages. These fees will be assessed on top of the mortgage interest rate. The fees are intended to recoup costs associated with loan origination, processing, and servicing.
The fees will be applied to all mortgages with a loan-to-value ratio of 80% or higher. This means that if you have a mortgage with an 80% loan-to-value ratio or higher, you will be subject to these fees.
The fees will vary depending on the loan-to-value ratio and the loan size. For example, a loan with an 80% loan-to-value ratio and a loan size of $200,000 will have a fee of 0.125%. This means that the borrower will have to pay an additional $250 on top of the interest rate.
Impact on Middle-Class Homeowners
These new fees could have a significant impact on middle-class homeowners. Many middle-class homeowners have mortgages with loan-to-value ratios of 80% or higher. This means that they will be subject to these fees.
The fees could also make it more difficult for middle-class homeowners to refinance their mortgages. If they have to pay these fees, they may not be able to get the best rates available. This could lead to them paying more in interest over the life of the loan.
What You Should Do
If you are a middle-class homeowner, it is important to be aware of these new fees. Make sure to ask your lender about them when you are shopping for a mortgage or refinancing your mortgage.
You should also make sure that you are getting the best deal possible. Shop around and compare rates from different lenders. This will ensure that you are getting the best rate available and that you are not paying more than you have to.
Fannie Mae and Freddie Mac have recently announced new fees that could affect middle-class homeowners. These fees could make it more difficult for middle-class homeowners to get the best rates when they are refinancing their mortgages.
It is important to be aware of these fees and to shop around to make sure you are getting the best deal possible. Doing so will ensure that you are not paying more than you have to.