POST TAGSMarket Updates Refinance
Blog posted On July 16, 2021
As of today, Friday July 16th, 2021, the Federal Housing Finance Agency (FHFA) has eliminated the Adverse Market Refinance Fee. Homeowners still seeking to take advantage of record-low mortgage rates may now be able to save even more money through a refinance.
The Adverse Market Refinance Fee was a 50-basis point fee added to refinanced mortgages. The purpose of the fee was to cover expected economic losses related to the coronavirus pandemic. Acting FHFA Director, Sandra L. Thomas, said in a statement, “Eliminating the Adverse Market Refinance Fee will help families take advantage of the low-rate environment to save more money. Today's action furthers FHFA's priority of supporting affordable housing while simultaneously protecting the safety and soundness of the Enterprises.”
A mortgage refinance could be an opportunity for many homeowners to lower their monthly mortgage payment with a lower rate or by removing mortgage insurance. In some cases, homeowners can use a cash-out refinance to fund other investments like a home remodel or consolidate high interest debt. With the elimination of the adverse market refinance fee, the refinance process is now an even more affordable option.
If you have any questions about a mortgage refinance and what your options are, please let us know.