First time home buyers or those who refinance with a Freddie/Fannie loan – whether or not you voted for HopeNChange, you get to pay for it. That paltry little refund in your payroll check is being funded by a new mortgage fee.
…they’re paying for the two-month tax cut with what has turned into a brand new fee on home buyers.
The new fee is a minimum of one-tenth of 1 percent on Fannie Mae- and Freddie Mac-backed loans, and is likely to go much higher.
It will be imposed for the next 10 years on most mortgages and refinancings and it lasts for the life of the loan.
For every $200,000, it amounts to an extra $15 dollars a month.
It’s bad news for Patty Anderson, who’s buying a home in Virginia.
Anderson will save a couple hundred dollars from having her payroll tax cut extended but her mortgage broker told her the new fee would cost her almost $9,500.
“I was absolutely startled that it would add up to that much,” she said.
The $35.7 billion collected in fees won’t go into the Social Security fund to replace the lost payroll tax. It goes to the general treasury where Congress can spend it however they please.
Bill Burnett, Anderson’s broker and president of the Virginia Association of Mortgage Brokers, said you won’t see Congress’ new charge in the paperwork, but it’s there.
“It’s actually built into this [interest] rate. You would never see the fee as a cost to you,” he said.
Burnett said the fee will affect a “very large number” of homeowners.
“Your pocketbook is being raided in order to pay for a tax policy issue decided at the last minute by probably people who didn’t understand fully what they were legislating on.”
Yet another gimmick that will stifle economic recovery. But wait, who says Obama and his cronies want the American economy to recover? A true recovery would make it harder to implement the change they all long for…