Fannie Mae to Raise Fees and Rates

Fannie Mae to Raise Fees and Rates

According to reports in the Wall Street Journal, individuals applying for home loans backed by Fannie Mae will have to pay more in fees and interest rates. The new structure, which goes into effect in April, is part of a risk based pricing structure being adjusted by the agency.

For borrowers who get FHA loans, which are insured by the Federal Housing Administration, the new increases will not apply. For others, however, the increased fees and rates will come into play, to some extent, even if they have good credit.

One factor, determining the magnitude of the rates will be the amount of the down payment, along with the credit score of the borrower. While these factors will no longer keep the borrow immune to increased fees and interest rates, they will still be the basis for the amount of increase.