Fannie Mae announced this week that it will be increasing mortgage fees for prospective homebuyers with good credit scores as well as those trying to repair bad credit.
The fees, known as loan-level price adjustments, are set to go into effect on April 1; however, some lenders are already beginning to pass down fees to customers.
This would effectively double the fees for some borrowers. For example, someone with a 700 credit score used to pay around $800 in fees for a $200,000 mortgage. Under the new laws, these consumers could pay as much as $1,600, The Wall Street Journal reports. Some say this change could scare many out of the market.
"What could happen is that the people who are, let's say, at a 675 score might end up waiting a couple of months because the difference between a 675 and 680 is big," Les Berman, a senior mortgage advisor, told the Journal.
Consumers who are looking for credit score help can benefit from speaking with a credit repair company. Many credit reports contain errors, and by having an industry professional dispute these mistakes, consumers may be able to qualify for better rates and lower fees.