Have Good Credit? This Mortgage Fee Rule Changed What You Pay
If you have spent years building excellent credit, you expect the mortgage market to reward you for it. So it surprised a lot of borrowers when a federal fee change meant some buyers with strong credit began paying more in loan fees than they would have before, while some borrowers with lower scores began paying less.
Here is what actually changed, who it affects, and what you can do about it as a Charlotte homebuyer.
What Changed
Most conventional mortgages in America are backed by Fannie Mae and Freddie Mac, and those loans carry built-in fees called loan-level price adjustments, or LLPAs. These fees vary based on risk factors like your credit score and the size of your down payment, and they show up in your loan as either upfront cost or a slightly higher rate.
In 2023, the federal regulator that oversees Fannie and Freddie restructured that fee grid. The overall effect: fees fell for many borrowers with lower credit scores and smaller down payments, and rose for some borrowers with higher scores, particularly in certain down payment ranges. A separately proposed fee tied to debt-to-income ratios drew heavy criticism and was dropped before taking effect.
Who Pays More, Who Pays Less
The headline that good credit now costs more than bad credit is not accurate, and it is worth being precise. Borrowers with higher credit scores still pay lower fees and get better pricing than borrowers with lower scores, at every point on the grid. What changed is the gap: it narrowed, and some strong-credit borrowers now pay more than they would have under the old grid, especially at certain down payment levels.
The practical takeaway is that your exact combination of credit score and down payment now matters in less intuitive ways than before. Two borrowers with the same score can see different fee outcomes depending on how much they put down, and a bigger down payment is not automatically the cheapest configuration under the new grid.
What Did Not Change
Good credit is still worth real money. It still earns you lower rates, more loan options, easier approvals, and cheaper borrowing across your entire financial life, from car loans to insurance. Nobody should let this rule change talk them out of protecting their score.
The fee grid also only applies to conventional loans backed by Fannie and Freddie. FHA, VA, and other loan programs have their own separate cost structures, which is exactly why comparison shopping matters more now, not less.
What Charlotte Buyers Can Do About It
First, shop lenders. Fees and pricing vary between lenders on top of the federal grid, and quotes on the same day for the same borrower can differ meaningfully. Get at least three written quotes and compare the full cost, rate plus fees, not just the rate.
Second, have your lender run your actual scenario. Ask how your specific credit score and down payment combination prices out, and whether adjusting the down payment or loan type changes the math. A good loan officer can model FHA versus conventional, and different down payment levels, in minutes. The right structure is personal, and finding it is the entire game under the new rules.
Don’t take our word for it
See what our clients say:
We’re Social! Lets Connect:
Find out how much your home's worth
Use our home value estimator to get a free, instant home-value estimate.
Enter your address
Is this the correct address?
Who should we send the report to?
We're pulling comps for your home right now. Let us know where to send your personalized analysis.
Where should we send your custom report?
We'll email a detailed CMA and comparable sales analysis.
You're all set, friend!
* This is a rough estimate of your home's value. We'll be in touch shortly to gather a few more details so we can provide a more in-depth and accurate equity evaluation in today's market.
Thinking About Moving
to Charlotte?
Make your move easier with our Free Charlotte Relocation Guide. Get insider details on neighborhoods, schools, commute times, cost of living, local hotspots, and more — all in one helpful guide.
Click below to access your free relocation guide and start exploring Charlotte like a local.
Download NowThe Bottom Line
The fee change moved the numbers, but it did not change the strategy: strong credit, honest budgeting, and comparison shopping still win. What it added is a reason to work the details of your loan structure with a professional instead of assuming the defaults are optimal.
If you are buying in the Charlotte area, The Finigan Group will connect you with trusted local lenders who will model your exact scenario and find the structure that costs you least. Reach out anytime, and if you have a home to sell in the process, the home value tool on this page is your first step.
Let’s Connect Today!
Phone:
704-200-9833
Email:
info@thefinigangroup.com
Visit Us:
3440 Toringdon Way, ste 205
Charlotte NC 28277
