New taxes have already begun so refinance now if you need or want to.

Talk with your financial advisors.

There is a new surcharge that Fannie Mae and Freddie Mac, the two government sponsored mortgage agencies are imposing on mortgage refinancing. It is unbelievable that a government sponsored entity will increase fees on homeowners who are in need, suffering, and are barely able to make their payments. Something is clearly wrong here.

The government-controlled mortgage companies announced that they will levy a one-time 0.5 percent fee on refinance loans they purchase starting on Sept. 1, citing “market and economic uncertainty” caused by the coronavirus crisis.

While Fannie and Freddie will slap the fee on lenders at the point of sale, the cost will be passed on to consumers in the form of higher mortgage rates. The 50-basis-point surcharge amounts to about $1,400 for the average loan backed by the companies.

If you are thinking of refinancing, we think you should refinance before September 1st when the surcharge really adds to your payment.

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