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Fannie Mae - New Fees a Kick in the Gut?

Reblogger
Real Estate Agent with Re/Max Preferred Associates, Toledo, OH 353315

I believe we are going to see fee increases everywhere--not just Fannie Mae.  Companies need to recoup their losses and it is truly "buyer beware" in home purchases.

Original content by Dennis Helmstetter

Your Distressed Property and Short Sale Expert in Maryland

 Just like Freddie Mac did last fall, Fannie Mae will be adding a new schedule of add-on fees for borrowers to pay, either up front or financed into their mortgage, wether they have great credit and a large down payment or only fair credit and a not so big down payment.

Since foreclosure and short sales have been so costly to Freddie and Fannie, which together continue to fund or guarantee two thirds of new mortgages, they are trying to prevent further losses by initiating a multilayered risk based fee system.

Each risk factor has a separate add-on fee which is totaled and added to the buyers closing costs. Some real estate(condos) types are a higher risk factor, lower credit scores, lower down paments, investment properties, manufactured homes, and intererst only loans are also on the list.

All loans will have an adverse market fee of 0.25%

Even someone with a credit score over 800, and a 25% down payment will probably pay another 0.25% risk fee, but someone with a FICO score of 679 and a < 20% downpayment may be hit with a 2.75% risk fee. Add that up!

Yes, they cast taxpayers at least $150 Billion, and "we" now own Fannie and Freddie, but are they are bitting the hand that feeds them?

My advice - HURRY, and get your mortgage loan in order before these fees hit you this spring - do not tarry!

Private lenders may try to out compete, but most of their loans go to F&F, so they must follow the guidelines,, again HURRY i fyou plan to buy.

Dennis

Working with Distressed Homeowners to Avoid Foreclosures

www.MarylandDistressedProperties.com

www.Frederick-MontgomeryCountyHomes.com

 

Dennis Helmstetter, Associate Broker/Realtor

Certified Distressed Property Expert

Real Estate Teams LLC

O: 301-695-3020

C: 240-409-3966

E: dhelmstetter@mris.com

Site: www.MarylandDistressedProperties.com

Site: www.Frederick-MontgomeryCountyHomes.com

 

Posted by
LINDA SABO, REALTOR
RE/MAX PREFERRED ASSOC.
Office:  (419) 867-8022
Mobil:  (419) 481-3117  
http://HomesForSaleLucasCounty.com
sabo@HomesForSaleLucasCounty.com
 
 

Comments (1)

Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I guess we get to foot the bill coming and going.

Jan 08, 2011 03:55 AM