Rising Mortgage Fees = Rising Closing Costs

Alert. If you do not have a FICO Score 680 or higher and cannot put down a sizable down payment you’re being squeezed in the mortgage market. Fannie Mae and Freddie Mac are charging fees much higher than before to borrowers with lower scores and down payments of less than 30%. Unfortunately these are borrowers that were once considered “prime” credit applicants. Mortgage insurers like MGIC and PMI Group are raising premiums on consumers who have low down payments and scores mid-to upper 600s. Both penalties total thousands of dollars, payable either at settlement or in higher interest rates. Example if you qualify for a loan for 300,000.00 and your credit score is 675 and your LTV (Loan To Value) is 75% with a 25% down payment the additional cost will be 2,250.00 per loan. In today climate of finance the mortgage fallout and rising cost to loans are being passed on to us the consumer placing more strain on our economy and housing sector.