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How the new fee structure for mortgages impacts Arkansans



Little Rock, Arkansas – Some people believe that if you have a higher credit score, you will get a lower interest rate when purchasing a property with a mortgage.

That has changed, according to a new rule that went into effect today.

Beginning May 1, a new set of upfront fees will apply to Fannie Mae and Freddie Mac-backed mortgages.

This adjustment is part of the Biden Administration’s plan to make homeownership more accessible and egalitarian.

The modification has no effect on backed loans (such as FHA mortgages), jumbo loans, or other non-conforming loans.

According to, a borrower with a 650 credit score and a 20% down payment on a $350,000 mortgage would have previously paid more than $10,000 in fees.

The fees under the new rule are approximately $7,800.

Before the new rule, if you had a higher credit score, say 740, you would have paid more than $1,700 in fees.

That figure rises to more than $3,000 for you.

According to a local lender, it only impacts a specific demographic.

“We are talking about fees that aren’t paid on the front end, they are really baked into the interest rate. Now, the biggest changes are really affecting folks who are purchasing a second home or doing a cash-out refinance,” Mortgage Lending Vice-President Gabriel Womack said.

Gabriel Womack stated that this has been in effect for some time, but that it will be officially enforced on Monday.

Bottom line, according to, the fees for obtaining a conventional loan have become more liberal for some borrowers, depending on their credit score and down payment.

Keeping a high credit score and making a large down payment, according to, is still advantageous.