BENTONVILLE, Ark. (KNWA/KFTA) — As of May 1, new homebuyers could see some changes in mortgage payments.
Potential homebuyers getting mortgages from Freddie Mac or Fannie Mae could cost you more money now with a new fee structure.
Rich Allensworth and Robert Brown with Rock Mortgage said they’ve been busy trying to answer questions about the changes. The loans impacted make up about 60-70% of mortgages, according to the National Association of Realtors.
“The people who are most affected now versus before, is those loan level price adjustments would tier out at 740, now you’re basically having a hit on this rate from 740-760 all the way up to 780,” Brown said.
Chance Schubert, president of the Northwest Arkansas Board of Realtors, said there’s been lots of misinformation about these changes. Borrowers with higher credit scores could see increased mortgage fees and if you have a lower credit score, you could see decreased fees.
However, Schubert said people with higher credit scores will stay paying less than those with lower credit scores.
“Riskier borrowers have always and will continue to always pay more for a loan product,” Schubert said.
The Federal Housing Finance Agency made the changes to help make homebuying more accessible.
Schubert said the National Association of Realtors opposes the new fee structure because it doesn’t believe now is the time to be increasing fees for homebuyers.
Allensworth recommends being honest with all your finances when trying to get pre-qualified for your mortgage.
“Now more than ever with the changes going on when you’re working with a lender to get pre-qualified for your new home purchase, you really need to communicate everything you can, be as honest as possible,” Allensworth said.