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Refinancing Is More Affordable Since The Removal Of A Government Fee
During the pandemic Fannie Mae and Freddie Mac instituted a fee on mortgage refinancing. The Adverse Market Refinance Fee applied to loans over $125,000, and was a .50% fee charged to mortgage lenders for each refinance loan they originated. Lenders passed the cost down to applicants in various ways, with the end result being a more expensive refinancing process for homeowners. This fee has now been lifted, making refinancing a more cost effective option.
30 Year Fixed Mortgage Rate
|Change From Yesterday||-0.061%|
|Change From One Week Ago||0.015%|
|Change From One Year Ago||-0.151%|
15 Year Fixed Mortgage Rate
|Change From Yesterday||-0.051%|
|Change From One Week Ago||0.006%|
|Change From One Year Ago||-0.428%|
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Government agencies Fannie Mae and Freddie Mac recently removed a hefty fee that was applied to refinancing loans during the pandemic. The real estate market is experiencing historically low interest rates and sharp rises in real estate prices. This is the perfect time for homeowners to lock in a lower interest rate and cash out their recent equity gains. With the removal of the Adverse Market Refinance Fee, it is much more affordable for homeowners to refinance their properties. The agencies cited a decline in mortgages in delinquency as their reason for removing the fee.
Remote Online Notarization, also known as RON, allows a certified notary to complete a notarization process through remote identity verification methods and e-signatures. This drastically simplifies closing for mortgages and refinancing, which used to involve in-person visits to a lawyer’s office. A bill is being introduced to Congress that would standardize RON procedures across all 50 states. The standards have been introduced by an organization called MISMO, The Mortgage Industry Standards Maintenance Organization.
Fannie Mae and Freddie Mac are offering refinancing programs for low income homeowners. To qualify, the homeowner must already have a loan backed by the agencies. The homeowner must also make 80% or less than the average median income for the area in which they live. Refinancing can lower housing costs, but lower income homeowners have trouble qualifying for the loans. These programs are designed to level the playing field.