Haven’t Refinanced Yet? You should!

Upcoming Changes Could Increase Cost to Refinance

If you are considering refinancing your home loan, now is the time! Many homeowners who refinance their mortgages by December 1st, 2020 will avoid paying an additional 0.5% fee.
The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac will charge an Adverse Market Refinance Fee starting on September 1st, 2020. This has since been delayed. Fannie Mae and Freddie Mac are federally backed mortgage companies created by the United States Congress that buy and guarantee mortgages issued through lenders in the secondary mortgage market. Almost all mortgages generated by mortgage lenders are then sold, so many homeowners will be affected by this new fee.

What is happening?

  • The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to charge an Adverse Market Refinance Fee
  • The fee is being instated to cover projected COVID-19 losses
  • The fee was previously scheduled to take effect on September 1st, 2020 but was delayed to December 1st, 2020
  • Some refinance products and loan balances may be exempt from the fee
When you refinance, you replace your current mortgage with a new one. This new loan comes with a new term, interest rate and monthly mortgage payment that is typically more affordable to the homeowner in the long run. Refinancing can present several benefits as you tap into equity you’ve built in your home.

Why Refinance?

  • Lower monthly mortgage payments with a reduced interest rate.
  • Decrease your loan term to pay your home off faster.
  • Eliminate Private Mortgage Insurance (PMI) if your home value has increased enough.
  • Adjust your loan type from Fixed Rate to Adjustable-Rate or vice versa.
  • Cash-Out Refinance allows you to take equity from your home and use it as cash.
With Certainty Home Loans, homeowners can refinance with a simple and convenient digital mortgage process. And when it’s time to close on your new mortgage, our eClose process saves you time and makes it as safe as possible. The eClose capability allows 90% of the mortgage documents to be reviewed and signed electronically prior to your closing appointment.

Ready to find out if refinancing is right for you? Schedule a consultation now!
- Sep 22, 2020