We've seen a LOT of posts on social media about fees changing on mortgages.
“People with lower credit scores are paying less than people with higher credit scores now.”
This is FALSE. It’s a sensationalized headline. That’s what the media does. This is causing people to think that they should tank their credit scores to get lower fees.
“So, what is REALLY happening? The headlines that the media is putting out can’t be 100% false.”
You’re right. What is happening is that the GAP between a high-credit borrower and a low-credit borrower has shrunk. So yes, it’s slightly more expensive for someone with high credit now, and slightly less expensive for someone with low credit. But high credit borrowers are still paying significantly less than low-credit borrowers. All the details (and color-coded graphs) are in this article that will help out:
If you have any questions or want to learn more, give us a call! We are happy to give you more insight. Contact us here.
*Information provided by Kyle Whissel