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Mortgage Fees Rising, Even for Prime Borrowers

December 11, 2007

Getting a mortgage is getting more expensive, even for borrowers with good credit, thanks to the subprime crisis.

Fannie Mae and Freddie Mac, the two government sponsored entities created to promote homeownership, are slapping new surcharges on loans they either buy for their portfolios or for which they provide guarantees. If you’re not familiar with Fannie Mae & Freddie Mac, they’re likely behind your last closing. Regardless of the lender that is doing the funding of the new mortgage, Fannie Mae or Freddie Mac is behind the scenes. Therefore, after March 2008, any of your clients with FICO scores below 680 will be paying higher closing costs or a higher rate. Again, this will not be lender specific but across the board for everyone.

Click here to read the full CNBC article