This video discusses new laws that will add mortgage fees for certain homeowners. The new fee structure is intended to help lower-income people have an easier time getting a home loan. However, it seems to add quite a bit to mortgages for other buyers.
The fee adjustments will only apply to debtors with credit scores higher than 680 points, and it will include a 1% surcharge. The additional 1% could mean that some buyers will pay an extra $40 a month for their mortgages.
For example, someone who buys a $40,000 home will see more than $14,000 added to their loan in the long term.
Experts discuss whether these efforts to make lending easier for lower-income buyers are worth the risk. One professional says the problem with this type of arrangement is that it defeats its own purpose.
The goal of this setup is to end systematic racism in home lending. However, its structure offloads the efforts onto people who would otherwise be commended and rewarded for their high credit scores. Thus, these efforts could end up adding to racially-charged issues rather than helping the intended cause. The video lets you learn more about how experts view the new setup.
