Americans who have worked hard to build up their credit scores might not be too pleased with this week’s news that a new federal rule could reward those with lower credit at the expense of those with higher credit.

Under the rule, homebuyers with a credit score of 680 or higher will reportedly have to pay about $40 per month more than people with worse credit when taking out a home loan of $400,000, according to NewsNation, which cited a report from The Washington Times.

The rule goes into effect on May 1, 2023 — just ahead of the peak spring buying season. It will impact mortgages from private banks across the nation based on loan-level price adjustments (LLPAs) established by Fannie Mae and Freddie Mac.

High-credit consumers with scores ranging from 680 to above 780 will see a spike in mortgage costs, The New York Post reported, with the biggest increases being felt by those who put 15% to 20% down on a home.

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