The COVID-19 pandemic has led to a lot of developments in the finance world. The most predominant GSEs (Government Sponsored Entities) that buy up most of the mortgages in the country to sell to investors have announced a reprieve for the consumers by delaying the refinance fee until December of this year. This announcement came after an initial decision by Fannie & Freddie, the largest GSE in the country, of a 0.5% refinancing fee. Experts were worried that this decision would hike mortgage for buyers since lenders who wish to sell to Fannie& Freddie would levy the additional tax on their buyers. The market started seeing inflation in the market after the above-mentioned announcement.
The company justified this fee by citing the losses caused by the pandemic and intends to implement it in December. However, due to the intervention of the Federal Housing Finance Agency (FHFA), the fee has been delayed. This presents an array of opportunities for borrowers to refinance their mortgages and much lower rates than usual. This window of opportunity lasts only till December so those of you who wish to make the most of it should not wait till the 11th hour to avail it.
The pandemic has affected the entire globe and a lot of people are facing financial crises. If you want to restructure your finances and need a boost, the best way to go on about it would be a cash-out refinance that will allow you to get money out of your home without having to sell or rent it. This extra cash can be used to help you recover from the pandemic losses. Since it takes about two months for a refinance loan to settle, it is advisable to start looking for a reliable mortgage refinance lender in your area which gives you the most reasonable rates for your home.
The delay in refinance fee and the subsequent drop in interest rates is the lowest in decades and you could use this chance to get refinance your mortgage and get cash, which can further be used to pay off high-interest debts. As stated earlier, this is but temporary relief and while there are chances that Fannie & Freddie may further extend this delay, you should not count on it and get the best quotes from lenders.
The pandemic has also led to an increase in the number of divorces which in turn leads to financial problems like payment of alimony and child support. In the state of Arizona, Blake Mortgage is a well-known mortgage broker with two decades of experience. If you are going through a divorce and need to refinance a loan in Arizona, then Blake Mortgage is your best bet. With an excellent track record in refinancing mortgages, they have a client-focused approach towards business. Make the most of these low-interest rates and refinance your mortgage.