In mid-August, Fannie Mae and Freddie Mac imposed an “adverse market conditions” fee on conventional refinance transactions equal to one-half of one percent of the loan amount causing an industry uproar and spike in rates.
Last week, they offered a short reprieve by delaying the fee until December 1st. However, this fee will likely begin to impact refi rates well before since lenders cannot be certain if a loan will be delivered before the deadline.
Rates are currently near all-time lows but will trend higher as the deadline nears. It is imperative to start the process as soon as possible and get your file in queue before volume leads to longer turn-times.
If you are interested in saving money each month; accessing cash from your home’s equity for any reason; or shortening your loan term, please reach out as soon as possible to discuss your scenario.
December may seem far away, but a lot of interested homeowners are likely to pursue a refinance before the fee increase, and the sheer volume may lead to delays. It’s wise to get started now.