If you’re considering refinancing your mortgage and taking advantage of the currently low interest rates, here’s good news.
A new fee on mortgage refinances that was set to take effect September 1 has been delayed. The Federal Housing Finance Agency (FHFA) will delay enforcing the fee until Dec. 1. Borrowers with loan balances below $125,000 will not be charged the fee at all. The fee in question is the “adverse market refinance fee,” a 0.5% charge that will be added to all mortgage refinances sold to Fannie Mae and Freddie Mac, government entities that purchase the majority of mortgages. This article from Forbes explains it all.
The bottom line? If you’re planning to refinance, do it now, before the fee adds to your cost.
Tags: Federal Housing Finance Agency, low mortgage rates, mortgage affordability, mortgage financing, mortgage refinances
