If you’re in the market for a new home, chances are you’ll be hit with a new fee that will last for the life of your loan. For most people that’s thirty years to pay off a temporary tax holiday. CBS News has the story.
But there’s something the politicians weren’t bragging about – the fact that 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. (Read More)
Worse still, the money collected will not be going to fund Social Security. Instead it will go into the general fund for Congress to waste spend any way they see fit.
H/T Hot Air
Tags: mortgage fees, payroll tax holiday
This is an amazingly poingnent example of the socialist methid of redistributing the wealth. This is class warfare at its best! Take from the “haves,” homeowners, and give to the “have nots,” everybody else!
When government cannot lead, the results are often shoddy and unethical.
We need new leadership!
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All progressives want is all you got and they’ll get it any way they can only to selectively redistribute it to buy votes, keeping themselves in power. And the music plays on. 273 days away for an opportunity to begin to change this crap.
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A couple things you might want to note here.
1. The fee is on the lenders, not the borrowers.
2. If you didn’t know this was the pay mechanism, you weren’t paying any attention. This is not a secret fee.
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You don’t think the lenders are going to pass the fee along to consumers?
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I’m sure with all the corruption among lenders, the pass-through to the borrowers is not a problem!
The real problem is Obama is once again shirking his responsibilities to lead in the payroll tax debate.
This is another example of underhanded problem solving!
If you can’t manage congress, pass the burden to the free market and create more turmoil for consumers.
This is another tax on the rich!!
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