Want A Payroll Tax Cut? Be Prepared For HIGHER Fannie/ Freddie Fees
Democrats and Republicans both support extending the payroll tax cut, and they both agree that the cost of the extension should be offset through changes elsewhere in the budget.
The idea coming from the Democrats idea that is to….pass the expense off to would be HOME BUYERS.
(Note: Republicans have a similar idea brewing)
No, I am not kidding.
They want to pass along the expense of extending the payroll tax cut to home buyers in the form of HIGHER Fannie and Freddie fees. This is something the politicians don’t seem to want to acknowledge…and of course this would result in fewer buyers being able to buy a home due to increasing loan costs.
Just what our economy needs now..fewer home sales!
Mortgage financing giants Fannie Mae and Freddie Mac would charge mortgage lenders more to guarantee repayment of new loans when they buy them from lenders and bundle them into a mortgage-backed securities. Estimated revenue: $38 billion over 10 years.