If you were waiting for the right time to refinance at the record level-lows we have seen in the past few months, then I have some bad news for you. FHFA made a huge announcement which will unfortunately raise all refinance fees by at least .5%. So, to give an example, if your loan amount is $450,000, it will now cost $2,250 more in fees to get your refinance. Which would go directly into the government’s pocket. Purchases will remain unaffected by the change, but it is still a pretty huge blow considering the increase in refinances over the past few months. According to Mortgage News Daily, “in what can only be described as a cash grab, Fannie and Freddie’s regulator just announced a new tax on refinances.” Although, they go on to clarify that it is not technically a tax and it was not meant to hit the pocketbooks of American homeowners, that is exactly who this will impact. Essentially, FHFA which is Fannie and Freddie’s regulator has decided to implement a new price adjustment to all refinance transaction, this will apply to all loans sent to Fannie/Freddie in September which basically means almost all loans that are not currently in process. We just wanted to make this announcement, so our clients and realtors are aware of the change