Bradley Beach NJ Real Estate: Fannie & Freddie Roll Back Fees
Fannie Mae and Freddie Mac have both announced they will not impose the loan fee increase scheduled to go into effect this month. Fees were to have increased from .25% to .5%, making it even more difficult for Bradley Beach NJ home buyers. The biggest obstacle many home buyers face is the necessary cash needed for a down payment and closing costs.
Both companies, now controlled by the federal government, had decided to increase fees to boost their finances during difficult times.
Freddie Mac, however, will raise fees next year for riskier loan products, including mortgages that allow interest-only payments for the first few years. Freddie also will require higher credit scores for “piggyback” loans that allow borrowers to make smaller down payments by taking out two mortgages.
Taken together, Freddie Mac said the changes would provide “some relief from the challenges in the current market environment,” but added that it is following lending practices “that are prudent and largely applicable in all market conditions.”
Learn more about Bradley Beach NJ real estate at PatrickParkerHomes.com or give us a call, 201-788-6182.