Mortgage Fees Would Rise Under Payroll Tax Cut Deal

Homebuyers, beware.In exchange for a two-month tax cut, the Senate on Saturday approved a permanent increase in fees attached to mortgages backed by Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA).

The fee hike would apply to new mortgages and new refinances, and would last for the life of the loans.

The increase is meant to pay for the roughly $33 billion package the Senate approved Saturday to extend a 2 percentage point payroll tax cut for another two months. The Obama administration says 160 million people benefit from that tax cut.

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This bill passed the US Senate on Saturday but has yet to be voted on by the US House. Call your US Congressional Representative to express your thoughts on this three card Monte method for paying for Freddie & Fannie bonuses of over 35 million (video here).