Greg McBride, chief financial analyst at Bankrate.com, said fees often raised the average mortgage rate by one-eighth of a percent, or about $ 20 a month for a $ 300,000 loan.
“Cancellation of this ill-conceived and misappropriated fee is a win for both borrowers and lenders,” McBride said. “Some of the savings will end up in the pockets of consumers, but what the borrower sees will depend on finding the best deal.”
According to the latest research by Bankrate, on Monday the average fixed refinancing rate for 30 years was 3.27%. This is compared to a record low in January of 2.88%.
“The Federal Housing Finance Agency announced this when mortgage fixed rates fell to their lowest level since February,” said Holden Lewis, a home and mortgage lending specialist at NerdWallet. “This is a great moment, and you don’t often applaud a government agency for timing well.”
“There is no justification for charging a fee, so they are getting rid of it,” said MBA President Bob Broxmith. Wall Street Journal. “This is a clear manifestation of Acting Director Thompson’s shift towards mission and customers, as opposed to the previous director of Calabria’s single-minded focus on capital creation and exemption from custody.”