Mortgage Borrowers Have Three Months to Save Before Fee Hike Hit

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By Doug Huggins

As I’ve reported just this week, Congress has forced Freddie Mac, Fannie Mae and HUD to increase their fees on mortgage loans to pay for the temporary (2-month) payroll tax increase.  As you read here… The payroll tax cut extension bill passed by Congress on Dec. 23 requires that GSEs charge an average g-fee in 2012 of at least 10 bps higher than in 2011. The bill also directs the GSE regulator to adjust the g-fees so all lenders pay the same fee. 

"In early 2012, FHFA will further analyze whether additional guarantee fee increases are appropriate to ensure the new requirements are being met," DeMarco said Thursday morning.

The lawmakers relied on a 10-year increase in Fannie and Freddie g-fees to cover most of the costs of the legislation that extended the payroll tax reduction along with unemployment benefits for two months.

As a result, he Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to implement a congressionally mandated increase in their loan guarantee fees on April 1, 2012.

The legislation gives FHFA two years to implement a uniform fee structure. 

"FHFA will announce plans for further guarantee fee increases or other fee adjustments that will then be implemented gradually over the two-year implementation window, taking into consideration risk levels and conditions in financial markets," Demarco said. 

BOTTOM LINE: If you are seriously interested in refinancing your current home loan or are looking to purchase a home, NOW would the be opportune time to do so. Essentially, you have three-months to get the loan done before your lender will be forced to charge you higher fees to close.

 Not only will you save the additional fees if you move forward now, you will also be able to take full advantage of the lowest interest rates I’ve seen in my lifetime (and I turn 60 in March 2012).  With home prices still low and interest rates in the low 4% range and with our preferred Certified Lenders willing to help you purchase or refinance with No-Closing Costs – NOW is definitely the time to get off your assets and take advantage of this incredible market.

Ask about the “21-DAY CLOSING GUARANTEE” we’ve been able to negotiate with our Preferred-Certified Lenders.

Doug Huggins is recognized as the nation's leading expert on help indivduals and families find, qualify for and own a home of thier own, with little money down even with less than perfect credit. Let Doug refer you to a Top Mortgage Professional in your area - contact Doug - there's no cost and no obligation. doug@thehomeownershipcenterusa.org