Thinking of buying a home this fall? You may want to close prior to October 1 or November 7, depending on who your lender is.

According to Banker & Tradesman:

As of Oct. 1 for new mortgages delivered to Fannie Mae, and Nov. 7 for loans delivered to Freddie Mac, baseline “adverse market” fees will be doubled from one-quarter of a percentage point to one-half a percentage point – from $250 per $100,000 borrowed to $500 per $100,000 borrowed. That applies to all home purchasers and refinancers, irrespective of their individual risk characteristics …

And, if you’ve been bad (credit score under 720), you’ll pay more:

… borrowers with FICO scores below 720 and down payments of less than 15 percent will be charged quarter-point higher fees upfront.

But, if you’ve been good (credit score above 720):

Both companies now plan to reduce fees for borrowers with high FICO credit scores – 720 and up – who make down payments of less than 15 percent. Those borrowers will be quoted credits of one-quarter of a percentage point – amounting to cuts in their fees – at the application stage.

Source: Risk-based loans limit Fannie, Freddie point shaving – By Kenneth R. Harney, The Washington Post

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