With interest rates hitting record lows, many homeowners have been thinking about refinancing their mortgages in order to save money. However, they might change their mind next month.
That is when the implementation of a new “adverse market fee” assessed by Freddie Mac and Fannie Mae will take effect.
Starting on Sep. 1, all refinanced home mortgages must pay half of 1% of the loan. According to the Mortgage Banking Association (MBA), the fee could cost the average consumer looking to refinance about $1,400.
Freddie Mac and Fannie Mae guarantee around half of all mortgages in the country. The government created the companies decades apart with the intent to keep the housing market stable.
However, both government-sponsored enterprises don’t lend directly to consumers. They …