Disgusting……. Does this affect VA? Great credit, money down and assets should be rewarded for being lower risk.
@CatonDelRosario
Жыл бұрын
It’s for conventional loans only
@kellytlopez8620
Жыл бұрын
Sounds to me like banks just want to make more money with less down payments and include riskier buyers with lower credit scores. I’m all for helping more people buy homes versus investors but charging more to those with good credit and good down payments doesn’t sound right.
@CatonDelRosario
Жыл бұрын
Ultimately the banks actually don’t make more. This fee gets charged to the banks by Fannie & Freddie when the loan gets sold by the bank to them, so effectively banks just pass the fee to the borrower. Mortgage banks are actually losing money originating mortgages for the first time in over a decade because of how razor thin margins are and how volatile the market has been.
@kentsextro9692
Жыл бұрын
So they’re taking more money from someone with a good credit score and less from someone with a poor credit score, and that’s not high credit score subsidizing the low credit scores…. I never read it as people with poor credit scores paying less than people with good credit, because that’s not what it said
@CatonDelRosario
Жыл бұрын
I realized I could’ve broken down the changes before and after a bit better to explain it which I’ll do in my next video but effectively it closes an old loophole where you could put more than 15% but less than 20% and get a better rate than someone putting 20% down. That change just happens to be happening at the same time as the adjustment for lower FICO borrowers as they did a study over the last decade that showed that down payment vs FICO was actually a bigger indicator of risk. So both changes appear that way to the untrained eye but I get it.
@CatonDelRosario
Жыл бұрын
There was news articles running with people with 740 FICOS will pay a “new 1% fee” more and borrowers with low FICO would get a 1.75% fee discount. Which completely ignored the people with low FICOs will still pay significantly more in fees than the 740 borrower. Like I said I missed a chance to provide further context which I’ve got for the next video on this topic.
@curtisjackson1795
Жыл бұрын
Good video/ It’s weird were being punished for being financially responsible 😤 I’m just looking to buy my first house / SMH
@CatonDelRosario
Жыл бұрын
It’s not necessarily that anyone’s being punished I’d say. The agency’s make adjustments to their pricing all the time. It’s just these in particular made headlines because of how sweeping the changes are but I mean if I had it my way there’d be no adjustments at all 😅
@coreycorolla
Жыл бұрын
I’m in the same position, and we are absolutely being punished, this is so ridiculous
@aarong2374
Жыл бұрын
@@CatonDelRosario Also, it looked more like it was just clickbait.
@CatonDelRosario
Жыл бұрын
They’ll just throw Biden in front of every article and call it a day lol
@MistaWikked
Жыл бұрын
"It's just going to go up a little bit" every dollar counts in this current economy, and being able to save x amount of money more monthly can make a huge difference when hitting a bump in the road unless for most people unless you're buying a brand new house. Although it's not making it more expensive to buy a home upfront.... you are still going to end up paying an upwards of 10 thousand dollars more on a 30 year loan than you would have prior to the federal rule change. Edit: The most upsetting part about this is that we have been encouraged on getting credit into that 680-780 range and saving up 15-20% for a downpayment in order to get a good rate on an FHA loan.
@98fishingfool
Жыл бұрын
Does this effect anyone with a current mortgage or just those purchasing soon ?
@CatonDelRosario
Жыл бұрын
Just those purchasing soon, no changes to existing homeowners.
@AlmightyyCres
Жыл бұрын
So, for someone who just got their score to 800 and is waiting for a better house market while reaching 30k in savings for their first house. How will this affect me?
@CatonDelRosario
Жыл бұрын
Virtually no change at all or a slightly better rate depending on what % you’re putting down. Funny enough this has been in the rate sheet since Feb/Mar but news is only getting a hold of it now, so it’s not like anyone will actually see their fees jump up on May 1st either
@dharrell2000
Жыл бұрын
Anybody remember 2008?
@CatonDelRosario
Жыл бұрын
Not really the same things at play here. They still have to qualify and the vast majority under 660 or even 640 still won’t go conventional and will likely go FHA as they always have. Underwriting standards have been stricter I’ve noticed in the last couple years too.
@MistaWikked
Жыл бұрын
I just thought I should stop by to tell you that you were way off. Congratulations!
@CatonDelRosario
Жыл бұрын
Lol I went into further numbers but feel free to think whatever you want to make yourself feel better at night
@GirlofNicky
Жыл бұрын
Just who is the core Democratic constituency?
@CatonDelRosario
Жыл бұрын
I don’t care for politics on this channel, I just report the facts so people can find ways to buy a home.
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