Market Updates August 29, 2020

Mortgage Refinancing Will Be More Expensive as Fannie Mae & Freddie Mac Raise Fees

In an article posted in August, CNBC reported that Fannie Mae and Freddie Mac will be raising fees. Here are the key points the article highlights:

  • “Mortgage giants Fannie Mae and Freddie Mac just announced that they are raising fees for lenders on all mortgage refinances. The change is designed to shield the two from the additional risk brought on by the coronavirus pandemic.
  • The price adjustment adds 0.5% of the loan amount to the consumer’s cost. That amounts to $1,400 on the average mortgage originated today.
  • It will begin in September, which means it will basically apply to all refinances that aren’t already in process.”

“Consumers will have to pay more to refinance their mortgages after Fannie Mae and Freddie Mac announced that they are raising fees for lenders on the loans.” To get more details and read the entire article, CLICK HERE.

Need help figuring out what this news means for you? I am happy to discuss all your home ownership options and find what’s best for you! Please feel free to reach out if you are thinking about refinancing or selling, I work with incredible lenders and am always up to date on what is happening in the market and how it affects my customers. I look forward to working with you!