Homeowners can now refinance their mortgages without worrying about the added costs of a pandemic-era refinance fee.
The Adverse Market Refinance Fee was implemented by the Federal Housing Finance Agency (FHFA) in December 2020 to cover losses due to the COVID-19 pandemic. It added 0.5% to the cost of refinancing certain types of mortgage loans, which was passed on to borrowers in the form of higher interest rates.
But as a way to reduce housing costs, the FHFA announced on July 16 that it has ended the Adverse Market Refinance Fee earlier than expected, and mortgages originated today will not be subject to the fee.
Now is the perfect time to take advantage of historically low mortgage rates without being subject to the 0.5% fee. You can see your estimated refinance rates across multiple lenders by filling out a single form on ChangeMyRate.com.