With rates already at historic lows, homeowners in the market for a refi will soon get to keep a little extra in their wallets.
Per the Federal Housing Finance Agency, Fannie Mae and Freddie Mac will eliminate a 50-basis point refinancing fee beginning on Aug. 1. The fee—equal to $500 for every $100,000 refinanced—was originally put into place to cover $6 billion in anticipated losses due to the pandemic, according to Inman.
“The COVID-19 pandemic financially exacerbated America’s affordable housing crisis. Eliminating the Adverse Market Refinance Fee will help families take advantage of the low-rate environment to save more money,” FHFA Acting Director Sandra Thomson said in a statement.
Thompson added that the agency expects lenders will pass cost savings along to borrowers.