The Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, recently announced an extra 0.5% fee for all refinance transactions. The fee hike was initially set to kick in on September 1. However, the implementation date was extended to December 1. This gives the industry more time to prepare, and it could trigger a new wave of refinancing as borrowers scramble to lock in their interest rates ahead of the significant price increase.
For example, a $300,000 home loan refinance that closes after December 1 will cost $1,500 more than the same transaction that closes prior to December 1. Loan balances below $125,000 will be exempted from the fee increase.
If you’re in the market to buy a home or refinance your home loan, this could be the perfect time to start the process.
Please contact me for more information or to evaluate your options!