Refinance costs have been reduced!
The Federal Housing Finance Agency (FHFA) recently announced an end to the controversial Freddie Mac and Fannie Mae adverse market refinance fee (guarantee fee). In 2020, the FHFA started charging this fee in response to the “increased costs and risks” of financial lending during the global pandemic of Covid-19. However, after about a year or so of pleading from the mortgage industry, the 50 basis point (bps) fee has been removed. That would’ve been an additional $1500 on a $300k loan!
The elimination of the fee is one of many changes that has been asked of Fannie Mae and Freddie Mac (GSEs or agencies) to make. This shift is definitely appreciated by the mortgage industry and homeowners.
What does this mean for you?
The elimination of the fee will help homeowners take advantage of the current mortgage rates. If you’ve been seriously considering a refinance, now is the time to act! This great news arrives with impeccable timing as it will not only help reduce the cost of refinancing but it’s also coupled with some of the lowest interest rates we’ve seen over the past few months!
Now could be your chance to refinance affordably to:
- Lower your interest rate or remove Mortgage Insurance (MI)
- Save on your monthly mortgage payment
- Get cash out to renovate your home or pay off high-interest debt!
Our team is closing refinances below the industry average, so let’s get your application going so you can start saving sooner!