Adverse market fee goes into effect December 1, 2020
A new mortgage refinancing fee, known as the “adverse market fee,” is just around the corner—and it has caused both concern and confusion among many homeowners. As interest rates have again declined and homeowners look to save money through refinancing, many questions have arisen with the advent of the new mortgage fee for refinancing. We dug in to learn more about the refinancing fee and answer your questions.
If you’re already working with a lender on refinancing and haven’t discussed the new mortgage fee, verify with them that you’ll be able to complete the process before December 1.
Should I still refinance even if I can’t finish before December 1?
It will depend upon your circumstance.
Move forward with refinancing if:
Your loan is too small ($125,000 or under) or too large ($765,600 or more) to be affected
Your new interest rate will still save you money over the life of your loan, even with the extra fee
Considering keeping your current mortgage if:
The additional fee will result in you paying more for your refinanced mortgage
Interested in refinancing? Let’s talk soon!
If you have more questions about mortgage refinancing, check out our blog on the topic. If you’d like to see whether refinancing is for you—especially before the refinancing fee goes into effect—let us know. We can help you refinance your mortgage. Contact us today to schedule a phone or Zoom® appointment with our bilingual staff—and we’ll walk you through your next steps.
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