PREPARE: Homebuyers With Good Credit

"this is coming directly from the executive branch of the US government so this will happen and it will be effective on May 1st"

"experts reportedly estimating that good credit buyers could pay about forty dollars additional a month on a four hundred thousand dollar mortgage the rule is set to go into effect on May 1st"

"those with a higher credit score and a bigger down payment will be subsidizing those without"

"for example if someone has a credit score of 639 or less they will get a 1.75 discount on their mortgage rate but those who have a credit score between 720 to 759 will pay a fee of 0.75 percent"

"it's those of us making the biggest down payments of between 15 to 20 percent that are being penalized the most"

"on a four hundred thousand dollar mortgage for example that adds up to roughly forty dollars per month in extra payments which over the lifetime of the 30-year loan is about Fourteen and a half thousand dollars"

"if you were to hypothetically have that worse 640 credit score and you had that 2.75 extra mortgage rate on top on a 400 000 mortgage versus the 0.875 for having an excellent credit score that works out to a monthly payment difference of 369 dollars"

"or almost four and a half thousand dollars per year"

"this only applies to new FHA home buyers and not existing homeowners"

"if you have an excellent credit score your monthly payment is not going to be higher than someone with a bad credit score"

"those with a bad credit score of 640 or lower have an llpa of 2.75 percent versus only 0.875 percent for those with a score of 740"