The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to increase the fees charged to lenders by .5% beginning December 1. Fannie and Freddie insure a large majority of mortgage loans and this fee increase will be passed on to borrowers. On a $500,000 mortgage loan that means an extra $2500 in fees.
Loans under $125,000 would be exempt from the fee. The fee would also not be accessed on purchase mortgages.
The FHFA said it needed to implement the fee, saying pandemic-related losses could total at least $6 billion for Fannie and Freddie. The fee was originally supposed to go into effect on September 1 but was pushed back after strong opposition from the mortgage industry.
Rates on mortgage loans hit another historic low last week and are expected to go lower in the lead up to the fee increase in December. To lock in your low rate contact us today for a custom rate quote and lower your monthly payment today.