Waived Risk-Based Credit Fees
Waived risk-based credit fees refer to the elimination of certain charges typically applied to mortgage loans based on the borrower's credit profile and other risk factors. These fees are usually incorporated into the loan's pricing.
For programs like the Freddie Mac Home Possible mortgage, the waiver of standard risk-based credit fees offers a significant advantage to lenders, allowing them to provide more competitive pricing to eligible borrowers. This waiver helps reduce the overall cost of the loan for borrowers, making homeownership more affordable.
While standard risk-based fees are waived, a custom mortgage insurance (MI) credit fee in price may still apply.
Source material
- sf fm homepossible mortgage
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