|by Tim Hart – VanDyk Mortgage|
Some people have dubbed this the “Biden rule”, but this is really a change from Fannie Mae and Freddie Mac. Read More…Conventional loans are the only loan program that this has happened with.
First step. It is for new mortgages only. Your existing mortgage will not be affected.
Here’s the Facts
- Are borrowers with high credit scores going to be paying the same or higher rates than a borrower with lower credit scores? NO
- Are borrowers with high credit scores going to be paying a higher rate than they did before these changes? YES
- Are borrowers with lower credit scores going to be paying a lower rate than they did before these changes? YES
- Better credit score borrowers ARE NOT paying higher rates than lower credit score buyers.
The issue many people are having is that Fannie Mae has increased the costs for higher credit scores and lowered costs for lower credit scores.
I don’t agree with this change, but I wanted to clear the air on some misinformation I have already seen. Continue to pay your bills and keep that credit score high!