The Impact of New Mortgage Fees on Homebuyers with Good Credit

Changes to fees applied to federal mortgages have led to a misconception that borrowers with low credit scores will pay less at the expense of borrowers with good credit. The fees have been in place since 2008 and are often layered on top of a borrower’s base mortgage rate. The higher your credit score, the less you generally pay. The fees were recalibrated in January, and the updated fees became effective for loans delivered to Fannie and Freddie on May 1. The mission is to make homeownership more accessible, and the pricing changes are not expected to have a significant impact on the broader housing and mortgage markets.