Freddie Mac Pinches Lenders, Homebuyers Pay

Freddie Mac is squeezing lenders tighter this spring, and that means higher fees will be passed on to homebuyers.

The government-sponsored mortgage-finance company stated in a memo last week that it will raise upfront fees to lenders on riskier home loans, including those for homebuyers with lower credit ratings and higher loan-to-value ratios. The changes will take effect March 1.

For borrowers with credit scores below 660, charges could rise to as much as 3.25 percent, while homebuyers with a FICO credit score of 740 or higher will see a 0.25 percent upfront fee. To offset an upfront fee of 0.25 percent, your lender could raise the rate of your 30-year loan by 0.05 of a percentage point, or about $10 a month on a $200,000 loan.