If you’re looking to buy a home, watch out because from May 1, rate changes that vary based on your credit ratings, for loans backed by Fannie Mae and Freddie Mac, come into effect.

The real estate agent, Giovanni Hernández, explains that “what happens is that people who had credit of 740 or more did not have any adjustment because they had high credit for mortgage purposes, which credit was increased to 780, parameter changed to 780”.

These changes will only be made to conventional loans, and in some cases people with higher credit scores may end up paying more, while those with lower credit scores will pay less.

“The qualifying process is the same except the interest rate costs less for those with low credit and it costs something it didn’t cost for those with high credit,” explains the expert.

María Angelina Martínez does not take advantage of the change. “This change affects me negatively because those of us who have a high score like mine, which is 760, are going to pay more, have more expenses as we prepared for the best benefits.”

Martínez only points out that “I cannot deny that it is an emotional blow, they are penalizing me for being judicious and careful with my credit”.

According to the real estate agent, the commission is paid only once and will depend on the amount of the loan. “One time only and it’s done in the closing costs, it’s not tied to the interest rate you have to pay over the life of the loan.”

Anie Castaño will benefit from the change. “It benefits me because my credit is 640, it gives me a better chance of buying my house without paying so much money.”

“As of May 1, people who have a credit of 640, 660, 620 which previously cost them more to obtain the loan will cost them less than the interest rate,” they warn.

Although these changes officially take effect on May 1, according to a real estate agent, several banks have already been implementing this adjustment in conventional loans for months.

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