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News Summary: Closing Fannie Mae could boost rates

The Associated Press

IN PLANNING STAGES: Homebuyers could feel the pinch if Congress phases out Fannie Mae and Freddie Mac, the government-controlled mortgage guarantee giants that were rescued with a $187 billion taxpayer bailout during the financial crisis.

STATUS UPDATE: Congressional efforts to overhaul the nation's mortgage finance system got a boost Tuesday from President Barack Obama's call for changes that are generally in line with the Senate's bipartisan plan.

POCKETBOOK HIT: Typical borrowers could pay about $75 per month in extra interest payments, about half a percentage point, on an average mortgage under the Senate proposal, and about $135 more under the House plan. That's on a conforming loan of about $200,000 with the borrower providing a 20 percent down payment.