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Refinancing Your Home Just Got Cheaper

Late last week, the FHFA (Federal Housing Finance Agency) announced Fannie Mae and Freddie Mac will be eliminating the Adverse Market Refinance fees for any refinance loans closing after August 1, 2021. This will immediately impact and decrease the total loan costs for refinances.

 

Previously, borrowers were charged a 50-basis point fee calculated off their loan amount. FHFA oversees Fannie Mae & Freddie Mac who are the agencies that purchase over 60% of the nation’s mortgages and issue mortgage-backed securities.

During the middle of the Covid-19 pandemic, the FHFA assessed this fee to supposably combat the losses projected as a result of high unemployment, including what would happen at the end of mortgage forbearance. As the bulk of borrowers have now come out of forbearance, the FHFA along with Fannie Mae and Freddie Mac have decided to eliminate the adverse market refinance fee for now and will continue to scrutinize the market and make policy updates as needed. This also coincides with the removal of Mark Calabria as the regulator of FHFA and the appointment of Sandra Thompson.

Elimination of the Refinance Adverse Market Refinance Fee could save hundreds to thousands of dollars off refinance costs (depending on the loan amount). This reduction in cost/rate will help families reduce their housing costs in the wake of the pandemic. Removal of this fee, combined with continually low interest rates, allow more homeowner to still benefit from refinancing.

For more detail Kevin Berju NMLS #137213 PhillyMortgageTeam@afncorp.com 215-681-3587


Article Written By: Kevin Berju 

American Financial Network NMLS # 137213

Looking for a Lender in Philadelphia? Contact the Philly Mortgage Team. Click below.

 

Kevin Berju starts Philly Mortgage Team with over 25 years in the mortgage industry. Prior to working with residential and commercial mortgages, Kevin graduated with a business degree from Temple University, owned his own business, and worked as an agent for years in both commercial & residential Real Estate. With Kevin’s diverse knowledge of the real estate and mortgage industries, his clients are thoroughly guided throughout their home buying or refinance process. As a result of his knowledge, attention to detail, responsiveness to his clients, and exceptional work ethic, Kevin was awarded the Five Star Mortgage Professional recognition in Philadelphia Magazine for the past successive years as well as reaching the top 1% of all originators country wide since 2012 as designated by Mortgage Executive magazine.

As a mortgage professional for over 2 decades, Kevin is an invaluable resource for both first-time and experienced home buyers. With his accomplishment of the Certified Mortgage Planning Specialist designation, Kevin is placed in an elite group of the top 5% of mortgage professionals in the industry. Looking to Purchase or Refinance in Pennsylvania, New Jersey, or Florida? Kevin Berju is the Lender for You!

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