1:20 PM – Friday, April 21, 2023
Biden’s new federal housing rule mandates that home buyers with good credit scores pay higher mortgage rates and higher fees to subsidize home buyers with riskier credit ratings and lower down payments, giving the latter group better mortgage rates and lower fees. For example, if you have a good credit score of 680 or higher with a mortgage loan of $400,000, you will be charged about $40 more a month. And those who make high down payments of 15% to 20% will face the highest fees.
The additional fees go into effect on May 1st and only applies to Americans buying houses or refinancing after that date.
Rena Kliot, broker and founder of Pulse International Realty, joins OAN’s Alicia Summers to talk about the new rules.