Home Loan Refinancing Will Get a Lot More Expensive Soon

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!

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ALG Mortgage was founded by a team of local entrepreneurs with deep roots in the mortgage, real estate, banking, public accounting, and digital marketing industries. As an expert independent mortgage agency, we are not tied to any one lender in the industry, allowing us to truly act as partners for the clients we serve, and ensure they end up in the absolute best option for their own personal situation.