Avoid the NEW Freddie and Fannie REFINANCE 0.5% FEE beginning in September 2020

Dated: August 21 2020

Views: 225

First let me explain this NEW Fee charged for Refinance Loan begining September 1, 2020.

Fannie and Freddie’s New Refinance Fees

 

Last week, Fannie Mae and Freddie Mac announced the addition of a 0.5% fee that will be applied to all mortgage refinances starting in September. Any refinance that is not already in process will be hit with this fee – an estimated $1,400 on the average mortgage originated today. This announcement was met with strong criticism from many in the mortgage industry as the housing market has been one of the sole bright spots in this pandemic economy. “This announcement is bad for our nation’s homeowners and the nascent economic recovery,” wrote Bob Broeksmit, CEO of the Mortgage Bankers Association, in a statement. “Requiring Fannie Mae and Freddie Mac to charge a 0.5% fee on refinance mortgages they purchase will raise interest rates on families trying to make ends meet in these challenging times.” This change is specifically designed to protect Fannie and Freddie from “market and economic uncertainty resulting in higher risk and costs” as noted in a letter Fannie Mae sent to lenders. There is also concern on whether the change was made because the FHFA is increasingly worried that Fannie Mae and Freddie Mac could face huge losses when the mortgage bailout program ends, and borrowers have to start making their payments again.

Now; Here is how to avoid the fee and borrow the same or more money at the same rate: There is no new fee for New Home Purchases at the same interest rates; and to sell your current home which may have dramatically increased in vaule since you purchsed it might be the better plan, use the increased equity to purchase your next home. Want to know how much your existing home is worth? Check HERE. If you are ready to sell your home and look for a new home CONTACT ME today  and lets disuss a plan for your specific situation. Put me to work, keeping my clients moving for 17 years and counting.

Wayne Gaddy, REALTOR® | 843-603-5552 | wayne@waynegaddy.com  

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Wayne Gaddy

Wayne is a Local Real Estate Broker/REALTOR® representing folks with buying or selling Residential Homes, Condos, Vacation Homes, New Homes, Land and Investment Property. Grand Strand specialist who ....

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