Congress is giving an early Christmas present to those who plan to mortgage or refinance a home next year – new fees to cover the payroll tax cut that was due to expire on Jan 1.
To fund the two month extension, which carries a $33 billion price tag, the Senate passed a bill on Saturday that will add approximately $17 per month to a $200,000 mortgage or a refinancing for that same amount. The fee increase will apply to financing provided by government backed mortgage giants Fannie Mae and Freddie Mac.
FHA mortgages will also be affected by the increase of 0.1% from the current 0.3% to cover the extension. FHA mortgages are popular with first time home buyers and offers buyers the ability to put a little as 3.5% down on the purchase of a home.
Wallingford PA Real Estate – Wallingford, PA 19086
