A new idea to pay for the extension of the payroll tax cut is now being tossed around Washington. Members from both parties & both houses have been promoting a fee that will be charged to banks for the delivery of every mortgage loan that is sent to Fannie Mae & Freddie Mac.
While it is not a certainty, the fee's discussed would be equal to about 1% of the loan amount, which by my guess would cost the average borrower a 1/4% on their rate for the life of the loan. I ask you, how long do you think your tax cut extension will last?
I'm reminded of wise words from Ronald Reagan - The nine most terrifying words in the English language are: 'I'm from the government and I'm here to help.'"