Why New Yorkers With Good Credit Could Have Higher Mortgage Rates
If you have been trying to buy a house in New York State or anywhere else since the COVID-19 pandemic, you may have noticed how difficult it has been. At the beginning of the pandemic, there were extremely low-interest rates but the prices for houses in Upstate New York were absurdly overpriced. Cash offers from residents in the city who wanted to move north to the Hudson Valley made it nearly impossible for locals to compete.
Prices have gone down slightly over the past few years but now the interest rate has gone back up.
New Yorkers are struggling to find housing and it looks like now even having a good credit score won't even help you. In fact, it might make it even more difficult.
Mortgage Rate Changes Coming?
According to Newsweek, starting in May a federal rule could change the mortgage structure in America. The mortgage rate for people with good credit could be increased by adding an extra $60 to their monthly payments. Why the increase? The plan is to get Americans with lower incomes into houses.
The increase is also to offset loans that will be given to riskier borrowers with lower credit scores.
This is being criticized by Republican lawmakers. Many are calling the rule unfair as it's punishing people who maintain good credit.
Do you think it's fair to charge people with good credit scores more money and give benefits to those with lower scores?