Why Refinancing Just Became More Expensive
Planning to refinance your home loan? Prepare to pay a new fee.
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A new Federal Housing Finance Agency fee could mean your next mortgage refinance will be a little more expensive than you hoped.
Beginning this month, the agency is assessing a 0.5% fee on lenders for newly refinanced mortgages.
The fee itself is designed to help Fannie Mae and Freddie Mac cope with losses stemming from the coronavirus pandemic. The Federal Housing Finance Agency oversees the two mortgage giants, which back millions of U.S. mortgages.
Under the federal CARES Act passed in March, homeowners facing a coronavirus-related hardship have been able to suspend mortgage payments. As a result, Fannie Mae and Freddie Mac have incurred more than $6 billion in losses.