The only mortgages that are required to pay are those that lenders sell to Fannie Mae and Freddie Mac. But you may not know at the time you apply for a loan whether your lender intends to sell your mortgage to either GSE.
Lenders Might Find Different Ways to Charge the Fee
The FHFA charges the fee directly to lenders, not to borrowers, which means lenders can choose how they pass the cost onto consumers. Some lenders might roll the fee into the interest rate while others might add it as a one-time fee as part of closing costs.
De la Motte says most lenders appear to be absorbing the cost. “Since many lenders have benefitted from both higher margins and higher volumes this year, they’re able to absorb the cost and still offer rates that are at all-time historical lows.”
Refinancing Is Still (Most Likely) Worthwhile
Most experts agree this fee isn’t a barrier to refinancing. Currently, average interest rates on 30-year fixed-rate mortgages are around 2.72%, according to Freddie Mac, which is the lowest rate on record.
More than 19 million homeowners can save over $300 a month by refinancing their mortgage and locking in a lower rate. This is a considerable savings, and one that’s not guaranteed to last, as rates could shoot up at any time.