This week, updated pricing grids from Fannie Mae and Freddie Mac revealed borrowers with "good credit" - in the 700 range - will be required to pay an additional 1.5% in upfront fees starting April 1, 2014. Of course, this only affects those mortgages backed by Fannie and Freddie, but those loans account for the greatest percentage of U.S. mortgages.

The most direct result of this change will likely be higher interest rates on individual loans, considering borrowers usually roll fees into the mortgage rather than paying up front. This news is particularly sensitive in light of the recent decision of the Fed to begin tapering off its billion dollar life support program for the US economy, which is highly speculated to result in higher interest rates in general.

You can attribute the higher fees to recent changes to loan level price adjustments, or LLPAs, which is a sliding scale of fee amounts calculated on assumed loan risk. The LLPA scale is the reason borrowers with lower credit scores or down payments (riskier borrowers) assume higher interest rates and fees.

Here's how the fees will be distributed:

• ? Borrowers with FICO score 760+ (with less than 20% down)

Before April 1: often no LLPA fee

After April 1: 0.75-1.0% LLPA fee

• ? Borrowers with FICO scores 740-759 (with less than 20% down)

Before April 1: 0.25% LLPA fee

After April 1: 1.5% LLPA fee

• ? Borrowers with FICO scores 720-739 (with less than 10% down)

Before April1: 0.5% LLPA fee

After April1: 2.0% LLPA fee

Find the full fee grid here.

A lot is happening in the mortgage market - some implementations may even offset these higher fees. For any questions or concerns about how this may affect you as a mortgage loan applicant, give us a call 1-888-74-UNITY.