Do you have less than 25% down to put on a home?
Do you need a loan-term longer than fifteen years?
Is your credit score less than exceptional?
If you answered yes to these questions, you could soon be paying more to get a mortgage.
Here's an example: Say you are purchasing a $250,000 home, putting 20% down, and your credit score is 720. Yourrisk fee will now be $1,000 (versus $500 before). And if your credit score is 680, the fee will now be $3,500 (versus $3,000 before).
The moral to the story is "visit you loan officer before looking for a home." Consumers need to know the costs associated with their real estate transaction BEFORE shopping for a home. There are too many complexities that can turn a good real estate transaction into a bad one.
Happy hunting!
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