Want To Refinance Your Home Loan With Record Low Rates? Get Ready For A Hefty Fee

The Federal Reserve has helped push interest rates to record lows, which allows millions to consider refinancing. But a new fee from Fannie and Freddie could introduce an obstacle, critics say.The Federal Reserve has helped push interest rates to record lows, which allows millions to consider refinancing. But a new fee from Fannie and Freddie could introduce an obstacle, critics say.

The fee will be charged by Fannie Mae and Freddie Mac, which guarantee about half of all mortgages in the country. The government-sponsored enterprises, Fannie and Freddie, were created separately decades ago to keep the market stable. Their loan guarantees make banks more willing to loan money.Many experts say the new fee could discourage homeowners from refinancing.

MBAMortgage It is really sad they made this desicion overnight and no one was able to question or stop them. This is very unfair to those who have been paying their mortgage for years and are in need to refinance. Is it a punishment? Unbelievable!

Home ownership is rapidly becoming a bad deal

MBAMortgage How about dont make risky loans to begin with..

Excuse me. From Colombia. Badly comments Mike Pence about PPL (Persona privada de su libertad ) in our country..out interference.

Unless homeowners are refinancing for the remaining or a shorter term on their current loan, they are paying tens or even hundreds of thousands of dollars more in finance charges. The 0.5% kicker is a drop in the bucket, so who cares? The new term had better be the same or less.

This is evil and very wrong. They're adding a pain in the ass to a pain in the ass. There's more than enough skimming off the top of our money each time it moves. Even shitty Russia has better taxation than our criminal banks and government. We split the Crown for less than this!

perrylau

F&F's actions largely got us into the 2008 economic crisis and they both got bailed out. Now F&F are preying on consumers during this crises caused by a global pandemic.

Covid-gouging! They are making profit on ppl over the pandemic! JoeBiden SenKamalaHarris TheDemocrats DemConvention

In part it's because Congress refuses to give guidance on how and when money will be generated for those who've defaulted due to pandemic. GOP f*ckateers again.

Thanks Obama!

The fee can be added to the principal - last sentence in the article

I'm not sure if this is anecdotal, but I've noticed a real reluctance on their part to take calls, to arrange callbacks, and, generally, to follow up. I get why they don't want it to be easy, but that can't be good for society.

I just closed on my refinance this month. APR below 3%! Amazing how low the rates are.

I could swear I paid 1% so half is better

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Refinancing your mortgage will cost more thanks to a new fee from Fannie Mae and Freddie MacFannie Mae and Freddie Mac are rolling out a new ‘adverse market fee’ in light of the coronavirus pandemic. Critics of the move say it will cost homeowners... Are the banks colluding?
Source: MarketWatch - 🏆 3. / 97 Read more »

Borrowers Face New Fee to Cover Heightened RisksFannie Mae and Freddie Mac said they would impose a new fee to insulate themselves from losses on refinanced mortgages they guarantee, a sign of potential turbulence in the housing market and a move likely to generate pushback from lenders. Marxist Maxine at it again. Just more of the same lender gouging. The VA funding fee is already the same abomination. It’s not about maintaining and funding the original Amercan Dream, it’s now all about lending greed controlled by elites who want more than anything to have everything...and then some.
Source: WSJ - 🏆 98. / 63 Read more »