Higher mortgage fees could compensate low rates

Although mortgage rates are forecast to hover near all-time lows until at least 2014, a growing number of lenders are starting to increase the fees associated with servicing the home loan, MarketWatch reports.

Although mortgage rates are forecast to hover near all-time lows until at least 2014, a growing number of lenders are starting to increase the fees associated with servicing the home loan, MarketWatch reports.

According to the website, the rate for a 30-year fixed-rate mortgage averaged 3.95 percent during the week ending February 23, and since rates are currently so affordable, this hike in fees will likely go unnoticed by a majority of borrowers.

Additionally, a number of industry experts believe this fee increase will most likely be applied predominantly to government-backed mortgages, such as those serviced by Fannie Mae or Freddie Mac.

"The message there for consumers is even though none of this stuff is going to have a big impact right away, the cost of getting government backed mortgages is going to go up," Inside Mortgage Finance publisher Guy D. Cecala told MarketWatch.

Meanwhile, the guarantee fee borrowers pay to Fannie and Freddie is expected to rise by one-tenth of a percentage point at the beginning of April. This increase could be reflected by financial regulators tacking on one-eighth of a percent to mortgage rates at the beginning of the same month.



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