Friday, January 30, 2009

Fannie Mae Piles On

Having helped to create the economy threatening debacle we find ourselves in Fannie Mae (essentially an arm of the federal Government) now decides to make it more expensive to buy a condo.

The Federal National Mortgage Association or Fannie Mae has taken steps to make the cost of purchasing or refinancing a condo more expensive unless the purchase makes a sizable down payment.

With many lenders are already wary of condo loans because of their default rate, Fannie Mae has added a fee of .75 percent of the loan amount of a 30-year fixed mortgage, for borrowers who put down 25 percent of the purchase price or less, effective April 1. In other words, if a condo is priced at $300,000, with a mortgage of $240,000 (a 20 percent down payment), and Fannie Mae will be purchasing the loan from your lender, it will assess the buyer an additional $1,800.

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