Posted on 12/18/2011 7:05:27 PM PST by Graybeard58
WASHINGTON — Who is paying for the two-month extension of the payroll tax cut working its way through Congress? The cost is being dropped in the laps of most people who buy homes or refinance beginning next year.
The typical person who buys a $200,000 home or refinances that amount starting on Jan. 1 would have to pay roughly $17 more a month for their mortgage, thanks to a fee increase included in the payroll tax cut bill that the Senate passed Saturday. The White House said the fee increases would be phased in gradually.
The legislation provides a two-month extension of a payroll tax cut and long-term unemployment benefits that would otherwise expire on Jan. 1. It would also delay for two months a cut in Medicare reimbursements for doctors that is scheduled to take effect on New Year’s Day. The House is expected to act on the bill early next week. Two more months of the Social Security tax cut amounts to a savings of about $165 for a worker making $50,000 a year.
To cover its $33 billion price tag, the measure increases the fee that the government-backed mortgage giants, Fannie Mae and Freddie Mac, charge to insure home mortgages. That fee, which Senate aides said currently averages around 0.3 percentage point, would rise by 0.1 percentage point under the bill. The increase will also apply to people whose mortgages are backed by the Federal Housing Administration, which typically serves lower-income and first-time buyers.
The higher fee would not apply to people who currently have mortgages unless they refinance beginning next year.
(Excerpt) Read more at suntimes.com ...
Just another tax and the GOP goes along..Fools....
Put down 20% and you don’t have to pay PMI.
This tax nails the middle class.
People who play by the rules get NAILED
Anyone who wanted to refinance or buy a new house
guess what??? 90% of the mortgages
FEE INCREASE.
CONGRESS CUT THE BUDGET A*** HOLES
anyone who wants a mortgage gets THOUSAND DOLLAR FEE INCREASE
I was telling everyone this was in the bill the other day. The bill also says theses ‘fees’ collected by Fannie and Freddie go to the treasury. It will take the new home buyers 10 yrs to pay off the 2 mnth extension. Fuzzy math. Glad Fox news got ahold of it. Took them long enough.
Not surprising spin, considering the source:
“Chicago Sun-Times via A.P. | December 17, 2011 | Alan Fram”
These ‘fees’ do not expire unlike the ‘extensions’. All in the future who finance or refinance their home purchase/mortgage via Freddie and Fannie will pay them for the length of their mortgage. So it is really a ‘tax’ increase primarily on the middle class as they are the ones who utilize Fannie/Freddie. Screw both parties....
Dirty little secret of this tax reduction is less money going into your retirement account so you get less social security when you retire.
If you buy a house using the gov’t programs collecting the increased fees you pay the tax but no payback later in retirement benefits.
The house has submitted a budget each year, and dingy harry refused to allow a vote on it.
The first thing the house MUST do is say, "NO MORE CONTINUING RESOLUTIONS!!!!"
Mark
interesting article, thanks.
one minor point to the author...
I don’t think a person making $50K should be buying
a house that costs $200K. That’s what got us into this mess.
I think the historical good-sense figure is 3 to one,
so no greater than $150K. I think I read that on Market-Ticker.
Other than that, the proposal makes sense, if the sheeple
refuse to fund their own Social Security retirement thru payroll deductions
let them fund it through mortgage payments. Its a flat tax.
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