The FHFA announced on July 16 that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries effective August 1, 2021. Lenders will no longer be required to pay Fannie and Freddie a 50-basis-point fee when they deliver refinanced mortgages. The fee was designed to cover losses projected as a result of the COVID-19 pandemic.
It is expected that the decrease in costs to lenders will in turn be passed on to the consumer. Couple this event with the recent decline in rates, and it could be setting up for a refinance boom in August. The Mortgage Bankers Association said that due to the rise in home prices resulting in significant borrower equity, there is no need for the fee.
Bottom line: With rates at such low levels and with the above event, now is, again, time to refinance your mortgage to capture the ultra-low borrowing costs.
We are ready to help you find the best possible mortgage solution for your situation. Contact Sheila Siegel at Synergy Financial Group today.
