Are Higher Credit Scores Being Punished? The Mortgage Fee Policy That’s Sparking Debate

As you dive into the world of homebuying, it’s crucial to understand how these new fees will impact your mortgage application process and overall financial planning.

[{"selector":"#anim-5104c9dc-2652-407d-859a-b4c1774384fd","keyframes":{"opacity":[0,1]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c9a0bfb4-61ea-403b-b589-7f6ecbc219eb","keyframes":{"transform":["translate3d(76.92307%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6b326f35-505f-4211-884b-2f80e1382175","keyframes":{"opacity":[0,1]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a9e42c4c-5f1c-4415-8f63-798093cde5d0","keyframes":{"transform":["translate3d(-812.19489%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-459ac5ef-87bb-438b-8689-9397af36f6be","keyframes":{"opacity":[0,1]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c3f0ae21-64f4-4c79-9e07-3875fcec384b","keyframes":{"transform":["translate3d(-161.05264%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5ff83608-927e-436c-a09c-070ac91db536","keyframes":{"opacity":[0,1]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bbfbbc21-7e2e-41aa-bb7c-ec85db5895d5","keyframes":{"transform":["translate3d(0px, -179.68255%, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Arrow CONTINUE READING Learn more

We will explain the rationale behind the FHFA’s mortgage fee adjustments and explore the potential consequences for homebuyers and the broader housing market.

[{"selector":"#anim-24be4621-d5cf-4298-a22b-ebcbb89ca58c","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-288ffe06-8424-4c1c-ad63-2b4341c26bf7","keyframes":{"transform":["translate3d(-106.62651%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

What is Happening?

[{"selector":"#anim-8f648319-93cf-46b5-9aee-b46e16b877b4","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b16345ee-ffab-4cd8-a5b5-acf86c09ba9d","keyframes":{"transform":["translate3d(117.74193%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3d35c9dd-a51f-4a96-9b53-e56fc94e9881","keyframes":{"opacity":[0,1]},"delay":300,"duration":1200,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] The Federal Housing Finance Agency (FHFA) intends to promote equity and enhance first-time homebuyers’ and minorities’ access to housing by increasing fees for borrowers with higher credit scores and decreasing them for those with lower scores. Learn more

Diving Into The New Fees

[{"selector":"#anim-f107802d-b705-4efb-83d0-e62d4f1568bf","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-96890614-e955-4c0d-91b6-247e82617c91","keyframes":{"transform":["translate3d(117.41935%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8228d315-8f71-4ae4-bce2-747c97ea55fc","keyframes":{"opacity":[0,1]},"delay":300,"duration":1200,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Under the new fee structure, Alice, with a 20% down payment, will be charged an LLPA of 1.5% (since her credit score is 680). This means she will pay $3,600 in fees on her loan amount of $240,000 ($240,000 * 1.5%). Learn more

What One Expert Believes

[{"selector":"#anim-34be0741-fed6-4a46-802c-7564d8b7f787","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bcc4e1ee-5997-4b88-b1a4-fd340e266796","keyframes":{"transform":["translate3d(116.61342%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-44326a51-de7b-43da-86aa-15a86409c34b","keyframes":{"opacity":[0,1]},"delay":300,"duration":1200,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Schiff wryly advised those with good credit scores, saying, “Just miss a few payments, screw up your credit score. That will help your mortgage rate.” Learn more

How New Homebuyers Are Affected

[{"selector":"#anim-9fe279c9-4a5e-40b9-85eb-116d59dc01cc","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1ca38261-53f7-4a30-be1d-72b642210fda","keyframes":{"transform":["translate3d(115.50632%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fa928e07-13e1-4c1a-9f66-4b5957661a4f","keyframes":{"opacity":[0,1]},"delay":300,"duration":1200,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] The impact on affordability will be felt differently by borrowers depending on their credit scores, down payments, and other factors. Learn more

Swipe up to read the full article.

[{"selector":"#anim-0151a953-d0a1-402b-88df-40eb7dd41e6b","keyframes":{"opacity":[0,1]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-76b62cd4-bf42-4421-b751-f4c9f9567b1e","keyframes":{"transform":["translate3d(0px, 270.61581%, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ab86b5c4-64c0-4e3c-b135-e52bf3f2c233 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-2.350446423696102%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Learn more

[{"selector":"#anim-39f1cc25-b9aa-478b-8daf-8fc11c70b506","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4ae10189-09d6-4a04-9cdf-9dee5325964a","keyframes":{"transform":["translate3d(259.40593%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-eb17f573-09b9-4eb5-8bd8-a51ad045dcc1","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-81c65f75-906a-40a5-b7d0-fa3cec395949","keyframes":{"transform":["translate3d(42.07921%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c2d6782b-051d-4f2e-9daf-2692eabe4bfe","keyframes":{"opacity":[0,1]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b30482df-91f1-43aa-bf67-489f3d707671","keyframes":{"transform":["translate3d(-44.55445%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-63125509-525f-45e0-941f-b78c0a5eb470","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4b128488-2066-4bed-83f3-61b1d0d850da","keyframes":{"transform":["translate3d(-260.89109%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a411166f-d105-4389-8f23-4f0a6d88f5c6","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0476a012-ab94-4e3e-9789-3b0b14d8537a","keyframes":{"transform":["translate3d(151.50000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2744cf1e-d321-42bb-b80f-d56d12fb7214","keyframes":{"opacity":[0,1]},"delay":600,"duration":1600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b0878bc3-da73-4957-8111-6df7602aa3fb","keyframes":{"opacity":[0,1]},"delay":400,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ed87f358-06dc-4f0d-9203-ad7f1d14a884","keyframes":{"transform":["translate3d(-154.5%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ab1c6a12-35ff-4114-9e01-bad1689c42b4","keyframes":{"opacity":[0,1]},"delay":600,"duration":1600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]