Have you been considering a refinance, but you’re not sure if now is the right time? We’re already seeing historically low interest rates, which could help dramatically reduce your monthly mortgage payments. But if you’re still on the fence, I wanted to share another reason why now might be the perfect time for you to refi.
The Federal Housing Finance Agency (FHFA) has eliminated the adverse market fee, which previously added 0.5% of your loan balance to your total refinance costs, on most refinances. On a $300,000 loan, that meant you’d have to pay a fee of $1,500, in addition to normal closing costs But not anymore!
The adverse market fee was enacted to recoup economic losses caused by the COVID-19 pandemic. In a surprising reversal, the FHFA eliminated this fee, which means we can pass that savings on to you!
