#colorado #breckenridge #realestate #summervacation
Is it true? Yes, it is and it
starts May 1. I googled it to read the news articles, the
instructions/explanations from lenders, and to read it directly from Fannie
Mae. Here is a simple few short paragraphs from an article that seems to
summarize the LLPA best. "LLPAs are upfront fees
based on factors such as a borrower’s credit score and the size of their down
payment. The fees are typically converted into percentage points that alter
the buyer’s mortgage rate." "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%." "When absorbed into a
long-term mortgage rate, the increase is the equivalent of slightly less than
a quarter percentage point in mortgage rate. On a $400,000 loan with a 6%
mortgage rate, that buyer could expect their monthly payment to rise by about
$40, according to calculations by Stevens." "Meanwhile, buyers with
credit scores of 679 or lower will have their fees slashed, resulting in more
favorable mortgage rates. For example, a buyer with a 620 FICO credit score
with a down payment of 5% or less gets a 1.75% fee discount – a decrease from
the old fee rate of 3.50% for that bracket." From another article: "Why are these changes being made? These changes are part of the Federal Housing Finance Agency’s broader examination of fees to provide “equitable and sustainable access to homeownership” and shore up capital at Freddie Mac and Fannie Mae." |
