As you may know, in mid-August, Fannie Mae and Freddie Mac announced an “adverse market fee“ that increased interest rates for home loan refinances. However, in a dramatic shift, the start date for that fee has just been delayed!

How Much Cheaper?

The refi fee added a .5% surcharge on refinanced home loans. While the exact amount of the fee depends on the loan, the average increase amounts to $1400 per loan.

Now You See It, Now You Don’t

Before word of the fee increase, low interest rates had fostered a rush of home loan refinances. We personally helped many borrowers take advantage of the low rates to reduce their monthly payment through refinancing.

However, without warning, in mid-August, the Federal Housing Finance Agency (FHFA) announced a new refinance surcharge that would take effect September 1, 2020. The price increase came as a shock to the mortgage industry ““ who was then suddenly responsible for covering the new fee for loans with locked pricing that were already in the pipeline.

Needless to say, there was an outcry from the mortgage industry.

It worked. On August 24, 2020, the FHFA postponed the start date for the fee from September 1, 2020 to December 1, 2020. They also exempted refinance loans with balances under $125k.

What Does This Mean?

If you want to refi a home loan of $125k or less, you are not affected by the fee. If you are considering a refinance for a loan over 125k, now is a great time to take action. If you want to beat the fee, we need to get your refi started and processed now – before the new federally mandated deadline.

Let Me Help You Save Money!

I would love to assist you with your new mortgage refinance loan ““ but we have a new, tight deadline before the fee kicks in and need to get started ASAP!

Questions? Ready to get started on your refi? Contact Me!


Branch Manager, CMPS – NMLS# 256350

(c)  (651) 276-9439

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