Posted On: May 10, 2023 by Iowa State Bank in: General
There are so many benefits to getting your home loan from a local community bank. But if you want to save money on your mortgage you will want to shop for your loan. As consumers, we do our research and compare prices, quality, etc. on most purchases we make daily, so why would it be any different for one of the biggest expenses we have as a consumer? You may have seen in the news lately that there have been changes to mortgage fees starting May 1st. The Federal Housing Finance Authority (FHFA), which oversees federally backed mortgage companies, Freddie Mac and Fannie Mae, have implemented new credit risk fees that are meant to provide more opportunities for low-income borrowers to qualify for affordable homes. However, this has changed the fee structure and has some consequences for borrowers with higher credit scores. A credit risk fee (also known as Loan Level Price Adjustments- LLPA), is charged by the mortgage investment company and is a percentage of the loan amount based on Read More