LAS VEGAS (KLAS) – If you’re looking to buy a home and you have a good credit score, you’ll soon be paying more in mortgage fees to help subsidize those with riskier credit scores.
The Federal Housing Finance Agency’s new mortgage fee rule will go into effect on May 1st. The agency hopes by reducing the rates for riskier borrows can help make homes more affordable. But those with good credit scores will be helping offset the cost.
Real estate professionals are weighing in saying it is unfair to those that worked to earn a high credit score. “They are incentivizing those with bad credit which can lead us to into the same kind of problem we had back into 2008 when we were giving credit to anybody with that, I think it is rather dangerous,” President Tom Blanchard of the Nevada Association of Realtors said.
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 large down payments will feel the pain with the largest fees. The new fees will apply only to those buying homes or refinancing after May 1.