Congress’s recent $33 billion 2-month payroll tax cut extension is funded by a 10-year increase in guaranty fees that Fannie Mae and Freddie Mac charge lenders to guaranty their home loans.
The increase is for all Fannie and Freddie loans starting at the beginning of the second quarter 2012. As an example, this adds about $11 per month to a $200,000 loan, or about $4,000 over the life of the loan. All lenders have to add this increase to their pricing by law. They may either impose a one-time increase, or they may spread out the increase. To avoid these increased costs, buyers will have to act very soon!
FHA and VA loans will also increase in cost due to this law, but the government hasn’t said when those fees will go into effect on FHA and VA loans.
