There are plenty of reasons to refinance but avoiding an incoming Fannie Mae and Freddie Mac refinancing fee now tops the list! Fannie Mae and Freddie Mac will start charging an ‘Adverse Market Refinance Fee’ on December 1, 2020. This new fee, originally slated to begin September 1, with a new effective date is December 1, 2020, adds a .5% charge of the loan amount to all refinance loans.
Fannie Mae and Freddie Mac stated that the additional fee is to protect themselves from potential losses on any mortgage refinances they guarantee. Therefore, if you’re ready to refinance, there is only one way to avoid the upcoming fee and that is by closing on or before December 1, 2020. That is, they jointly stated: “In light of market and economic uncertainty resulting in higher risk and costs incurred by Fannie Mae and Freddie Mac, we are implementing a new loan-level price adjustment.” Start the process now before it is too late, Apply at Trust Mortgage today!