The Hangover is Here…

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 BankRate.com.) And lets hope for lots of Starbucks gift cards this holiday season…

New Fannie & Freddie Fees Boost Loan Costs

___________________________________________________________________
Psst!!.. do you like what you’re reading? Click here to subscribe to the site for free, and you’ll get updates sent automatically to you. And for more information about San Carlos, be sure to follow the White Oaks Blog on Facebook and on Twitter.
________________________________________________________________

1. What will happen to the $729,000 conforming loan?
2. Mortgage Rates Climb, As Expected…
3. Fed throws the housing market (another) life ring.
4. Running up the Score
5. How the New Economic Stimulus Plan will benefit San Carlos…