‘Santa Claus is early for homeowners looking to refinance’

‘Santa Claus is early for homeowners looking to refinance’

McBride was among the policy’s critics. The fee, McBride said, frequently meant that borrowers’ rates were often one-eighth of a percentage point higher than they otherwise might be. In actual dollar terms, the effect is relatively small but not insignificant for some — around $20 per month for a $300,000 loan. “The justification for the fee when it was sprung on the market was that it was necessary to pay for the costs of forbearance and pandemic-related payment relief incurred by Fannie Mae and Freddie Mac,” he said. “But the homeowners punished were those that weren’t high risk, weren’t in need of forbearance or payment relief and were in fact reducing their risk to the mortgage finance marketplace by reducing their rates and monthly payments. It never passed the smell test to begin with.”

“FHFA’s expectation is that those lenders who were charging borrowers the fee will pass cost savings back to borrowers,” the agency said. The FHFA said the fee and other policies put in place for the pandemic “were effective enough to warrant an early conclusion” of this fee.

“Santa Claus has come early for homeowners looking to refinance their mortgages,” Bankrate chief financial analyst Greg McBride wrote in response to the move. “To allow families to save more money, lenders will no longer be required to pay a 50-basis point fee when they deliver refinanced mortgages,” FHFA said last week in a press release.

Ethan Wolff-Mann is a writer at Yahoo Finance focusing on consumer issues, personal finance, retail, airlines, and more. Follow him on Twitter @ewolffmann. Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, YouTube, and reddit —

Story continues McBride wrote that the savings from the fee’s elimination should go back into the pockets of people with mortgages. However, some lenders might not pass the savings on, which is why it’s important to shop around and examine different lenders, said McBride.

The News Highlights

  • ‘Santa Claus is early for homeowners looking to refinance’
  • Check the latest News news updates and information about business, finance and more.
Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Exxon posts $4.7B in Q2 profit as demand for fuel rebounds
Exxon reports $4.7 billion in second-quarter profit as demand for fuel recovers
Exxon shareholders recently shook up the company’s board, voting to replace three of its 12 members with directors they said were better equipped to guide ...
'I want a solution to this problem' |  Business owner in downtown Austin reacts to implementation of camping ban
Heartbroken parents will sue a year after 9 soldiers died at sea
Dubin added that the troops were trapped inside for 45 minutes before the vehicle, known as an AAV, sank. Four Marines tried to use their body weight to ...
Face to face with Chicago Commissioner of  News Rosa Escareno on retirement, legacy
Face to face with Chicago Commissioner of News Rosa Escareno on retirement, legacy
“It was an incredible year and it’s a little bit of a fog because we forget how much happened,” Escareno said. “But I’ve never been in a situation where we had ...
Youngsville officer dies of COVID complications
Youngsville officer dies of COVID complications
Follow us on Twitter Sign up for newsletters emailed to your inbox. Select from these options: Breaking News, Evening News Headlines, Latest COVID-19 ...
News Highlights: Economic Growth, Robinhood IPO
News Highlights: Economic Growth, Robinhood IPO
In Robinhood’s stock debut, a tumble and then sharp swings ___ NEW YORK (AP) — Wall Street has given Robinhood a cool reception in the online broker’s debut in ...
Tower Health Plans ‘Strategic Alliance’ with Penn Medicine |  Berks Regional News
Tower Health Plans ‘Strategic Alliance’ with Penn Medicine | Berks Regional News
The board emphasized that the alliance is not a merger, and both Tower Health and Penn Medicine will remain independent. Tower Health also said it has had a ...
Florida virus cases soar, hospitals near peak last summer
Florida virus cases soar, hospitals near peak last summer
Florida hospitals reported more than 8,900 patients with COVID-19 on Thursday, according to data from the U.S. Department of Health and Human Services. The ...
Texas Governor Greg Abbott signs order banning COVID vaccine, masking mandates
Texas Governor Greg Abbott signs order banning COVID vaccine, masking mandates
The variant, which first emerged in India in December, now accounts for around 83 percent of cases nationwide, according to the CDC. In making the ...
Stocks soar to record, Robinhood IPO disappoints
Stocks soar to record, Robinhood IPO disappoints
ROBINHOOD PRICES IPO AT $38 PER SHARE RAISING $2B Ticker Security Last Change Change % HOOD ROBINHOOD MARKETS, INC. 34.82 -3.18 -8.37% Facebook Inc. reported ...
Carter County Schools Unveil School Health Plan |  News
Carter County Schools Unveil School Health Plan | News
Field trips and class/school club experiences won’t be allowed this year. All students will be eligible for free breakfasts and lunches. Parent of high school ...
Show next
Compsmag - Latest News from tech, business and health
Logo