LITTLE ROCK, Ark. – When you think about purchasing a home, that comes with a mortgage, some people might assume that if you have a higher credit score, you get a lower rate.

Well, with a new rule that went into effect today, that changes.

Starting May 1, a new schedule of upfront fees applies to mortgages backed by Fannie Maw and Freddie Mac.

This change is a part of the Biden Administration rule to provide more accessible, equitable homeownership.

Backed loans (like FHA mortgages), jumbo loans, and other non-conforming loans are not impacted by the change.

So, for example, according to, a borrower with a 650 credit score, with a 20% down payment on a $350,000 mortgage, before would have paid more than $10,000 in fees.

Under the new rule, the fees amount to around $7,800.

If someone has a higher credit score, around 740, before the new rule, you would have paid more than $1,700 in fees.

For you, that amount goes up to more than $3,000.

A local lender said it only affects a certain group.

“We are talking about fees that aren’t paid on the front end, they are really baked into the interest rate. Now, the biggest changes are really affecting folks who are purchasing a second home or doing a cash-out refinance,” Mortgage Lending Vice-President Gabriel Womack said.

Gabriel Womack said this has been in effect for some time now, but starting Monday, it’s implemented on the legal side of things.

Bottom line, according to depending on your credit score and down payment, the fees for taking out a conventional loan have gotten more generous for some borrowers.

Although, said it’s still to your advantage to keep a high credit score and make a hefty down payment.