Pea-n-Me
DIS Veteran
- Joined
- Jul 18, 2004
I think it’s that and confusing language to start with - probably deliberate. Looking through various articles will make your head spin.Don't be confused. It is not about the interest rate it is about the fees that are added to your loan. But, thanks to the media dumbing down the issues, many are confusing these fees with interest rates.
Can someone clarify...
Is this increase for people with "high" credit scores in the FEES or the INTEREST RATE?
If I understanding things correctly, the FEES are a one time charge that get rolled into the mortgage. If that's correct, on a $400,000 house, if you paid .25% in fees, that's $1,000. If you paid .375% in fees, that's $1,500. Numbers are from post #237.
So an extra $500 over the term of the loan to help others? If that's all this is, I really don't see the big deal.
@sam_gordon I think your question wasn’t answered because it seems few really know the answer at this point. But, respectfully, the letter I posted yesterday presumably is a clue. I’d hope that the financial gurus of those listed states have a better understanding of this than the rest of us do.
Directly from the letter:
”We write today expressing our deep concern with the new Federal Housing Finance Agency policy which goes into effect today and will have the net effect of making it significantly more expensive for people with good credit to buy houses. This new policy will force homebuyers with good credit to pay more on their mortgage every single month.”
Other posters on this thread have alluded to that, as well.
So yes, it is a fee, but it doesn’t seem like a one time fee; it seems more substantial, ie over the life of the loan.
Time will tell, I suppose, as more information comes out.
Honestly, it *should be* very transparent for new mortgage holders to see exactly what they’re buying into and how much it will cost them over the life of the mortgage.