Since President Biden took office, he has increased the role of the federal government in the lives of everyday Americans. The policies of this Administration have led to high inflation, more government dependency, a struggling economy, and mortgage rates that have doubled over the last 3 years. Instead of reversing his failed policies, he continues to double down.
Under a new rule from the Federal Housing Finance Agency (FHFA), which took effect on May 1st, borrowers with lower credit ratings and less money for a down payment will qualify for better mortgage rates, while those with higher ratings will pay increased fees. Individuals with a credit score over 680 will pay about $40 more each month on a $400,000 loan. This monthly payment could also be higher, depending on the size of the loan.
Simply put, Biden’s new policy will force home buyers with good credit to pay more for their mortgages to subsidize loans to higher-risk borrowers. To make matters worse, and similarly to his student loan forgiveness scheme, he is once again trying to bypass Congress by centralizing more power in the hands of the executive branch. This is why I introduced the Free Market Mortgage Act of 2023. This legislation would prevent Biden’s senseless FHFA policy from being enacted and stops his anti-capitalist agenda.
I am committed to halting the President’s detrimental agenda and holding his Administration accountable. Since Biden took office, he has made policy decisions that supersede authority with little or no oversight. This changes under a House Republican majority. We are fighting back and seeking to end a culture of dependency on the federal government. The last thing we should do is add more fees and burdens on hard-working Oklahomans. I will continue working to get our country back on track.
FAQs
Under a new rule from the Federal Housing Finance Agency (FHFA), which took effect on May 1st, borrowers with lower credit ratings and less money for a down payment will qualify for better mortgage rates, while those with higher ratings will pay increased fees.
What introduced ideas like the 30-year mortgage? ›
The 30-year mortgage was introduced soon after the Federal Housing Administration (FHA) was founded. Common mortgage terms were much shorter before then. By the 1950s, Congress authorized the 30-year mortgage for both newly-constructed and existing homes.
What are the new lending rules for 2023? ›
January 2023: Extension of the fee changes that were implemented in 2022 to reduce fees for borrowers most in need. May 2023: Lower fees for borrowers with lower credit scores. Borrowers with lower credit scores have traditionally been penalized by extra fees to help offset the theoretical risk to the lender.
Do buyers with good credit pay more? ›
Those fees are based on things including the borrower's credit score, size of the down payment, type of home and more. In some cases, people with better credit scores may pay more in fees, while those with lower credit scores will pay less.
Will mortgage rates ever be 3% again? ›
Lawrence Yun, chief economist at the National Association of Realtors, even told CNBC last year that he doesn't think mortgage rates will reach the 3% range again in his lifetime.
What will mortgage rates be in May 2024? ›
Indeed, Wells Fargo estimates the 30-year fixed mortgage rate will average 6.5% by the end of 2024 and 5.9% by the end of 2025. If you bought a home in 2022 or 2023, the prospect of refinancing your mortgage might seem appealing as rates fall.
What happens to mortgage rates in a recession? ›
Interest rates usually fall early in a recession and then rise later as the economy recovers. This means that the adjustable rate for a loan taken out during a recession is likely to rise once the downturn ends. The fixed-rate loan at recession pricing could be a better deal in the long run.
What are 30 year mortgages going for now? ›
Current mortgage and refinance interest rates
| Product | Interest Rate | APR |
|---|
| 10-1 ARM | 6.47% | 7.14% |
| 30-Year Fixed Rate FHA | 6.56% | 6.60% |
| 30-Year Fixed Rate VA | 7.60% | 7.62% |
| 30-Year Fixed Rate Jumbo | 6.34% | 6.39% |
5 more rowsWith a 30-year mortgage, you'll get lower monthly payments and more flexibility than you might with a mortgage that amortizes over 25 years. But you might also pay more for your home overall.
What is the dead pledge of mortgage? ›
It is believed that the concept of a mortgage began in early civilizations: an exchange of property with a pledge to repay over time. The pledge would be considered “dead,” or null, once the loan was repaid or if the borrower could not fulfill the terms of the deal.
You can deduct home mortgage interest on the first $750,000 ($375,000 if married filing separately) of indebtedness. However, higher limitations ($1 million ($500,000 if married filing separately)) apply if you are deducting mortgage interest from indebtedness incurred before December 16, 2017.
What is the MIP rate in 2023? ›
In early 2023, the Federal Housing Administration (FHA) reduced annual mortgage insurance premiums (MIP) from . 85% to 0.55%. The last time the FHA reduced its mortgage insurance premiums for U.S. homebuyers before this was back in 2015.
Who pays LLPA fees? ›
What is Loan Level Pricing Adjustments (LLPAs)? Fannie Mae and Freddie Mac impose a loan-level pricing adjustment which is a fee that is charged to mortgage borrowers who use a conventional mortgage, and the fee is based on the borrower's level of risk.
What is the meaning of free market in real estate? ›
One of the key aspects of a free market economy in real estate sales is the concept of willing sellers and willing buyers. This means that for a transaction to occur, both parties must agree on a price at which the property will change hands.
