Doug Whiteman | Yahoo Finance | Jul 20th, 2021
Category: Financial News
Tumbling mortgage rates just went even lower following news that an unpopular fee on refinances is coming to an end.
When the surcharge was first announced last summer, it created an uproar. It was meant to offset pandemic-related losses for mortgage giants Fannie Mae and Freddie Mac, two government-sponsored enterprises that buy most U.S. home loans and take them off lenders' hands.
The fee increased the cost of a refi by one-half of 1 percent (0.5%), so a $300,000 loan would have put you on the hook for an additional $1,500. Now that the extra charge is being eliminated, millions of homeowners who have yet to refinance have another reason to do that — besides today's low mortgage rates.