Alyss

The Biden administration raises mortgage payments for good credit & higher down payment homebuyers starting May 1st, in order to foot the bill for high-risk mortgage borrowers with lower credit scores & lower down payments. Homebuyers with credit scores of 680 or higher will pay an additional 0.75% in fees. This is about an additional $40 per month on a $400,000 mortgage. Homebuyers who make down payments of 15% to 20% will see the largest increase in fees. Home buyers with credit scores of 679 or lower and down payments of 5% or less will see their mortgage rates decrease by an average of 0.75%. The FHFA is facing a lawsuit from the Mortgage Bankers Association, which is challenging the legality of the changes.