Biden administration just made it cheaper to refinance your mortgage

The FHFA just eliminated the adverse market refinance fee, making it cheaper to get a mortgage refinance. (iStock)

The Federal Housing Finance Agency (FHFA) announced Friday that it would be eliminating the adverse market refinance fee from Fannie Mae and Freddie Mac home loans, making refinancing a mortgage cheaper for homeowners.

The elimination will apply to all mortgage loans beginning Aug. 1, 2021. The 50-basis point fee was instated last year by the Trump administration amid the COVID-19 pandemic, as Fannie Mae and Freddie Mac saw their profits decreasing due to the mortgage giants’ programs to help struggling families during the pandemic.

“The COVID-19 pandemic financially exacerbated America’s affordable housing crisis,” FHFA Acting Director Sandra L. Thompson said in a statement. “Eliminating the Adverse Market Refinance Fee will help families take advantage of the low-rate environment to save more money.”

With the controversial adverse…

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