If you have good credit, you’ve probably worked hard to build it up. You’ve paid your bills on time, kept your debt low, and avoided any major financial missteps. But did you know that your good credit could actually end up costing you more money when you buy a home?
That’s because of new federal mortgage rules that go into effect on May 1, 2023. These rules will increase the fees that homebuyers with good credit pay for mortgages. The goal of the changes is to make mortgages more affordable for low- and moderate-income borrowers. But it’s also likely to have the unintended consequence of making mortgages more expensive for people with good credit.
So how much more will you pay for a mortgage if you have good credit? It depends on a number of factors, including your credit score, the size of your down payment, and the type of mortgage you choose. But according to the Federal Housing Finance Agency, the average borrower with a credit score of 720 could pay an additional $1,200 in fees over the life of a 30-year mortgage.
If you’re thinking about buying a home in the next few months, you should be aware of these new mortgage rules and how they could affect you. Here are a few things you can do to minimize the impact of the changes:
- Shop around for the best mortgage rate. Even a small difference in interest rate can save you thousands of dollars over the life of the loan.
- Make a larger down payment. The more money you put down, the lower your monthly mortgage payment will be.
- Consider a government-backed mortgage. These mortgages typically have lower fees than conventional mortgages.
If you have any questions about the new mortgage rules, you should talk to a mortgage lender. They can help you understand how the changes will affect you and how you can get the best possible mortgage deal.
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