U.S. Government Responsible for Massive Mortgage Rate Increase

War On Wealth Series -

The congressionally mandated g-fee increases set to go into effect as of now, will artificially increase mortgage rates by more than 1/2 percent with some lenders. It will increase mortgage rates to some degree with all lenders.

The Federal Housing Finance Administration (FHFA) has mandated an increase in the Fannie Mae and Freddie Mac guarantee fees in order to finance the extension of the temporary payroll tax cut. I would really like to know who in congress voted for this. It amazes me that every time money needs to be found they attack the housing industry. Here’s the thing, it’s a no brainer that the housing market moves this economy. Mess with the housing market, mess with the economy, duh… The additional fees to finance the (temporary) payroll tax to guarantee Fannie Mae and Freddie Mac loans is past to the consumer in the way of higher mortgage rates. In fact, most lenders have already come out with their announcements as far as the impact on locking loans on mortgage rates.

With most of the lenders you will have to fund your loan between the beginning and the end of February of 2012. Literally booting some out of the market, thus slowing down our recovery. Talk about “War on Wealth” and short-sightedness. We couple a short term solution with long term consequences. Is this the American way?  Even if it the g-fee increases were eventually cancelled, would rates go back to what the market dictates? In my opinion, once banks get a taste of additional revenue, as what would happen if it were cancelled”, getting them to give it up would not be easy.

Sometimes you can’t do anything about what has happened, but you can certainly do something about the future. Find out how your congressperson voted on this one and remind them of what their duty is suppose to be. Looking out for your best interest!

Other Posts In This Series are:

• War On Wealth – A Primer (Introduction)
• The Accidental Philanthropist; but Uncle Sam! How Many Times Can You Tax The Same @#$% dollar?
• How Not To Turn $20 Into A $75,000 Disaster
• Maximizing The “Bank Of You Concept”; Setting Up Your Own Private Bank
• Life Insurance As An Estate Planning Tool
• Private Retirement Plans Vs. Employer Sponsored Retirement Plan Options
• Special Valuations For Intra-Family Transfers, Gift Taxes And Lifetime Transfers
• Why You Should Start A Personal Business?
• Advantages And Disadvantages Of Investing In Annuities
• How Owning Real Estate Can Help Me Save Taxes
• How To Reduce Your Real Estate Taxes
• Annuities, How They Work And Their Tax Advantages
• The Three Proactive Strategies Of Asset Protection
• Trusts – A Basic Foundation

Click Here To Check Out Our Post “Maximizing The Bank Of You Concept”

Leon C. Williams
Financial Strategist
LUCA Financial Services
http://leonsblog.leonwilliams.me
http://www.lucafinancial.com
leon@lucafinancial.com

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Tagged with: fannie mae • federal housing finance agency • fhfa • freddie mac • g-fee • g-fee increase • housing market • mortgage rates • us government

Filed under: credit • Financial Services • mortgage • Mortgages • Real Estate • Real Estate • Special Topics • Spending • WOW Debt • WOW Income Growth

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