j/c

680 is not a low credit score for a mortgage. Conventional mortgages can be approved with 620 or higher. FHA can go even lower.

There is a lot that does not make sense to me about this. Using the links below, page 2 for each: looking at your top tier borrower, 780+ credit score, the fee on a 95% LTV mortgage is 0.125%. Same borrower, larger downpayment to achieve a lower LTV of 80%, the fee is 3x as much at 0.375%. The 80% loan is not as risky as the 95% so I'm not really sure what is driving this. It seems to be meddling with risk based pricing in an illogical way.

For comparison, the old grid would have the same borrowers paying a 0.750% fee for a 95% LTV mortgage and a 0.250% fee for the 80% mortgage. This is definitely more in line with how you would expect risk-based pricing to work.

To summarize:
-Old grid, the higher the LTV, the higher the fee, save for the 75-80% bucket for some reason (might be a popular 2nd home/investment home LTV requirement, not really sure)
-New grid, as LTV improves (decreases, lower risk to lender), borrowers get charged a higher fee

That said, when comparing old vs new grids, fees are down across the board with one HUGE exception: the fee for the 75-80% LTV bucket has increased compared to the old grid.



At 80% you are not required to have private mortgage insurance (PMI), but you pay a higher monthly interest rate now. Really unsure why this borrower group was singled out here and effectively penalized. Eyeballing it the increase for this LTV bucket is roughly 0.125% more when compared to the old grid - on a $400k loan that does work out to be about $45/month more, which in turn ends up being $540/year and $16,200 over the entire 30 year term.

I'd love to hear the explanation for why every single LTV bucket, except for 75%-80%, received a decrease in the LLPA.


Just wait until they roll out the additional fee for having high debt (debt-to-income ratio >40%)....

New LLPA (Fee) Grid

Old LLPA Grid