New Taxes on Refinances from the Feds

Today's topic is about Fannie and Freddie and what they’ve been up to. There’s some good news and some bad news. I'm going to rip that bandaid off first, and we're going to go with the bad news. The federal government via the federal housing finance agency just announced a surprise fee or tax on all new refinance transactions that are sold to Fannie Mae and Freddie Mac. This amounts to about two-thirds of all home loans. The fee will be assessed regardless of the bank or mortgage company you work with. It covers everybody. This will result in a small increase in the interest rate that would normally have been available for you, which will consequently affect your payment.

So now for some really good news… though, interest rates are currently at extraordinarily low levels. And refinancing still may be a very smart move for you financially. It can save you money every month. You can reduce the number of months remaining on your mortgage and shorten your term. You can also look at consolidating your debt into your mortgage if it makes sense for you to do that. So let's take a look at your unique situation and see if you can benefit from this opportunity.

If you have questions, let me know.