Elimination of the adverse market refinance fee is a reality and refinancing going forward will be much less expensive for homeowners. This elimination of this fee started August 1, 2021 with Fannie Mae and Freddie Mac home loan refinances.
You ask “What on earth is an adverse market refinance fee?” The adverse market refinance fee was a charge on loans made by lenders and paid by homeowners along with all other closing costs. The amount equals .5% of the principal amount of the refinance, example: $200,000 loan the adverse fee would be $1000.
A Federal Housing Finance Agency (FHFA) spokesperson said this fee replaces lost revenue due to the COVID-19 pandemic and, with the level of pandemic cases declining, it was time to end the fee. The expectation is that lenders charging the fee will now pass along the savings to homeowners looking to refinance. Many critics saw the fee as an opportunistic fee that took advantage of homeowners looking to refinance to save some money. With the fee repeal, more homeowners can benefit from truly lower refinance rates and no hidden costs.
Now is the time to decide if refinancing your home loan is the right step for your financial future. Low rates won’t last forever. Naples Refinance is ready to help with this decision.
This blog is for informational purposes only. The blog content is our opinion, please contact our office with any questions. Rates, Programs, Guidelines are subject to change without notice. NMLS #1743702