If you're looking to buy a home this spring or summer, the Federal Housing Finance Agency is making a change to Loan Level Price Adjustments starting May 1.
LLPA's are those upfront fees when you buy a house that varies based on things like your credit score and your down payment. The changes will apply to Freddie Mac and Fannie Mae loans.
If you have a high credit score, your costs are going to increase by as much as 0.75% if you apply for a loan. And if you have a lower credit score, your fees will decrease by as much as 2%. Financial experts say if you have a high credit score, you’ll still pay less than if you have a low one.
But the penalty for having a lower credit score will be smaller than it was.
Why is this happening? The government is trying to make home-buying more affordable for more people. Here’s more information on how the fees could affect you from Fannie Mae.
If you are thinking of selling your home, please visit www.robyrobertson.com and check out the document ‘Selling with Roby’
Also, if you are buying or selling a home, check out this app Nester.
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