Freddie Mac and Fannie Mae raise fees

[Ryan Hazelwood]

Is anyone in the process of refinancing their property? Is everyone aware of these changes?

Key points

-Mortgage giants Fannie Mae and Freddie Mac just announced that they are raising fees for lenders on all mortgage refinances. The change is designed to shield the two from the additional risk brought on by the coronavirus pandemic.

-The price adjustment adds 0.5% of the loan amount to the consumer's cost. That amounts to $1,400 on the average mortgage originated today.

-It will begin in September, which means it will basically apply to all refinances that aren't already in process.