Mortgage Fees Are Changing on May 1. What It Means for Homebuyers

Some changes are coming tomortgagesthis month that could decrease fees for newhomebuyerswithlow credit scores.

The changes could result in lower fees for homebuyers who have credit scores under 700.

Overall, borrowers with higher credit scores will still pay less.

But the changes could mean less of a penalty for people who have a low credit score.

What does this mean for new homebuyers?

On a $250,000 loan, this equates to a savings of $1,250.

you could see tables outlining the new fee framework forFreddie MacandFannie Mae.

Borrowers will need to weigh these factors when taking out a mortgage.

Why are things changing?

“Higher-credit-score borrowers are not being charged more so that lower-credit-score borrowers can pay less,” Thompson said.