WHAT DOES THE PAYROLL TAX CUT EXTENSION AND MORTGAGES HAVE IN COMMON?

By
Mortgage and Lending with Universal American Mortgage Company NMLS 46083

 

taxing borrowersWhat does the payroll tax cut extension and mortgages have in common?  Up until today I would have said nothing but I would have been wrong; the 112th Congress has linked the two together. 

Over the weekend, the US Senate passed a two month extension of the payroll tax cut and long-term unemployment benefits.  The extension was passed with a solid 89 to 10 vote and the estimated cost of the extension is $33 billion.

To cover this cost, the Senate added a new fee to mortgages that are backed by Fannie Mae, Freddie Mac and FHA.  This new fee which Senate aides say averages about .10 percentage point would start January 1, 2012.  This would cost the typical person who has a new $200,000 mortgage $17.00 more per month.  $17.00 per month may not sound like much money, but it is the same as raising your mortgage rate by 1/8th of a percent.  This would apply to people buying a home or refinancing their mortgages; it would not apply to existing mortgages.

At present, the government is involved in 9 out of every 10 mortgages originated in the US.  The government believes by raising the cost of Fannie Mae, Freddie Mac and FHA loans it would encourage more private financing; the bill has not passed the House of Representatives yet.

Click here for the full Associated Press article and here for full Reuters article.

»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»»

Who Can You Call For Your Mortgage Needs in North Carolina?

Call Shay Campbell a licensed Loan Officer, NMLS# 46083 and LO5 designation, located in the Triangle area of NC, which includes Raleigh, Cary, Durham, Chapel Hill, Apex, Holly Springs, RTP and the counties of Wake, Durham, Johnston, Chatham and Orange.  Shay has over 12 years of originating experience in North Carolina and can assist you with FHA, VA, USDA, NCHFA and conventional loans.  He has a special interest in working with first time home buyers.  Shay can be contacted at 919-624-8614, shay@shaycampbellmortgage.com  or visit his website at shaycampbellmortgage.com.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Mortgage / Finance
Groups:
Mortgages
The Wake County Mortgage Brokers and Realtors Network of North Carolina
Tags:
payroll tax cut

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
634,330
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

Merry Christmas! May you Enjoy a Christmas sweetened with family & friends!

gingerbread

Dec 23, 2011 11:01 PM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
253,378

Shay Campbell

Raleigh, NC
Ask me a question
*
*
*
*
Spam prevention