Mortgage fee structure change will arrive May 1: Here's what to know

As of May 1st, the mortgage fee structure in America will undergo a significant change, affecting those looking to buy a home or refinance their existing mortgage. This change involves an increase in upfront fees and a reduction in the fee charged for a lower interest rate, making it more expensive for those with lower credit scores to secure a mortgage. To avoid this added cost, borrowers should aim to have a higher credit score or be willing to pay a higher interest rate. With mortgage rates currently at historic lows, this change in fees is particularly significant for those wanting to take advantage of these favorable rates. It’s essential to educate yourself on the new fee structure and how it affects your financial situation before committing to a mortgage. This change highlights the importance of being mindful and doing your research before jumping into a major financial decision. Overall, the new fee structure is a reminder that staying informed and knowledgeable about economic and industry changes is essential to financial success.