New mortgage rules
To the editor:
Southwest Florida and the city of Cape Coral have a booming real estate business, but it might be coming to a crash like in 2008 because of a new rules from the Biden administration.
The media for the most part is staying quit on this rule. Starting in May 2023 the Federal Housing Finance Agency, under new rules, consumers with lower credit ratings and less money for a down payment would qualify for better mortgage rates than they otherwise would have. People with a credit score of 680 and higher would be penalized. Many financial experts believe that borrowers with a credit score of about 680 would pay around $40 more per month extra on a $400,000 mortgage and over $15,000 over the life of a 30-year mortgage and it could be larger depending on the size of your loan. This is supposed to help subsidize people with lower credit ratings looking for a loan. (People have low credit scores for a reason.)
So, you work hard, save your money, you buy things by either paying cash or via credit, but pay off your balances in full or in a timely manner to maintain the essential “Good Credit Scores” and now you are punished for it! It looks like you now are penalized for good practices, timely payments, and diligence in handling all your financial obligations. This is another giant leap backwards in the realm of common sense and fair play! Welcome to the upside down and backwards world of President Biden’s Administration and the Democrats! Need a mortgage? Go to a credit union, you will not have to pay extra money. Time for hard-working Americans to stop the Progressive’s plan to “redistribute wealth” and from taking what’s not theirs. It’s Socialism, plain and simple.
Lou Walker
Cape Coral