Monday, November 22, 2010

Freddie Mac Raises FEES Up To 3.25% - OUCH!

By Troy Corman,

Today, Freddie Mac announced new fees it will charge mortgage lenders to buy their riskier loans. The new fees will take effect on all home loan closing dates on or after March 1, 2011.

The Freddie Mac March 1 fee changes will raise some of the upfront fees by as much 0.75 percent of loan balances and add costs for consumers using additional home loans as part of their borrowing. On a $250,000 loan, that would come to an extra $1,875 up front. For additional details, view the official Freddie Mac memo announcing new fees >

The fees start at .25% for credit scores of 740 or higher that wish to finance up to 85% of the home purchase. The fees stair-step up to 3.25% for those with credit scores of less than 660. There are also fees for secondary mortgages as well.

Freddie Mac and Fannie Mae finance the majority of US home loans. As they to lose billion$ of taxpayer money each quarter, I wouldn't be surprised to see additional fees as the losses continue to climb.

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