San Carlos Real Estate Agent, San Carlos Realtor The Hangover is Here… | The White Oaks Blog
San Carlos Real Estate December 20, 2007

The Hangover is Here…

by Chuck Gillooley


The headache and financial nausea from sub-prime disaster this year continues. Folks who apply for Fannie Mae or Freddie Mac backed conforming loans, those gov’t backed loans under $417,000 (what can you buy here for $417K?) are going to get socked for a “risk-based fee” of about $250 for every $100,000 borrowed. That could amount to an extra $1,000 that you hadn’t planned on. That buys quite a few lattes at Starbucks.

This fee will be even higher for those with less-than-stellar credit, or for any reason that makes the loan riskier. Here’s a great article that discusses this new fee in detail (courtesy of And lets hope for lots of Starbucks gift cards this holiday season…

New Fannie & Freddie Fees Boost Loan Costs

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