Galvin warns Mass. homeowners of looming refinance fee

BOSTON (WHDH) - Secretary of the Commonwealth William F. Galvin on Monday warned Massachusetts homeowners of a new adverse market refinance fee that goes into effect next month.

Starting on Dec. 1, Fannie Mae and Freddie Mac plan to implement a new 0.5 percent fee on all refinances, according to Galvin. Mortgages with balances below $125,000 will be exempt from the fee.

Galvin also encouraged homeowners to explore all of their options and make use of the mortgage refinancing calculator on the state’s website.

“There has been a surge in interest in refinancing this year, due to the reduction in rates and the unfortunate fact that many homeowners have fallen on hard times due to the pandemic,” Galvin said. “In order to avoid getting hit with this fee, you should take a look at your options to see if it is worth refinancing now.”

In September, the Federal Housing Finance Agency directed the companies to postpone the implementation of the fees due to the pandemic.

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