Earlier this year Fannie Mae and Freddie Mac (the agencies that provide the majority of the funding for mortgage loans) announced yet another layer of "loan level" price adjustments. These changes are making credit more expensive for both homebuyers and current homeowners looking to refinance- even those with near perfect credit. Now, if you're your credit score is 739 or below, you may pay a premium on your mortgage rate! Considering that the scoring model ranges from 300-850 and that well over 60% of the US population has a score lower than 739, these increased fees will have a major effect on borrowers. Unfortunately, these fees are mandatory and have nothing to do with the lender or mortgage professional a borrower chooses to work with. The new fees are simply Fannie Mae's and Freddie Mac's way of recouping losses associated with the recent rise in delinquencies and foreclosures. The good news is that sometimes small changes to a borrower's credit profile can increase scores- saving thousands of dollars on future mortgage payments.