As per New law (effective May 1) for New home buyers with good credit scores to pay $480 per year additionally along with mortgage to help people with lower credit scores Important update: New article that summarizes more clearly on the impact which looks positive for people with good credit score https://housingnewsletters.com/xperthomelending/6442f60b9d238671bb29a91c Prior articles: https://m.washingtontimes.com/news/2023/apr/18/joe-biden-hike-payments-good-credit-homebuyers-sub/ https://nypost.com/2023/04/16/how-the-us-is-subsidizing-high-risk-homebuyers-at-the-cost-of-those-with-good-credit/amp/ https://singlefamily.fanniemae.com/media/document/pdf/llpa-matrix-pdf?_ga=2.127686798.2035496586.1678292537-451913264.1678292537 #mortgage #housing
So you’re a good citizen? Here’s another $480 penalty for you
Glad I bought a house when I did 🥲 Rip to my fellow blinders with good credit scores.
But they want social equity
I bought my first home and subsequent ones with cash - the smartest thing I ever did. Major banks are more Mr. Potter than George Bailey.
Good for you but barely anyone's rich enough to buy homes in all-cash buddy.
People will 400+ credit scores would go and buy a dodge or a ford for 80k at a 12% interest for 75 months and ruin their credit score. Why not prevent lenders from lending them money in such cases so that they don’t end up with 400 credit score in the first place?
Wtf… does this apply to new home buyers after may 1 only?
Unfortunately yes. If someone closed their home on/before Apr 31, they don’t need to pay for rest of life/30 years
April 31? Nope ..
The example in article is $40 per month for a mortgage of $400K. For a 1M mortgage would it be 100per month and 1200 per year?
I think everyone here missed it until you. We have even more to lose looks like! “Under the revised LLPA pricing structure, a home buyer with a 740 FICO credit score and a 15% to 20% down payment will face a 1% surcharge – an increase of 0.750% compared to the old fee of just 0.250%.”
480 per yr you said? That's like 40$/ month. No one will notice that
But it’s a big amount in terms of govt charges for each person/year. Especially people brought loans prior to that are not affected but only people who will already pay hefty interest rates are being impacted. It would have been better to charge everyone little amount instead of charging lot on new home buyers
To introduce any new charge like that it can only be applied to new mortgages. Existing mortgage contracts are already written and can't be changed, that's the whole point of the contract. Also high interest rates are temporary in the long term eventually it will come down in x time and people will refinance so that's a non issue for the topic of introducing this new charge. A person buying a home has to consider all this and make their decision to buy.
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This has to be a joke right?
Unfortunately it’s real
All jokes are real in real estate