So I just listened to President Obama mention that responsible homeowners will have the ability to refinance with a “small fee” so it doesn’t add to the National Debt. So what is this small fee? If you haven’t heard , it is called the Guarantee Fee or “G” Fee.
What does this mean? In short it means higher interest rates. How? Because lenders will have to set aside money to send off that will be funneled back to the Treasury. This is how these programs will be funded, and this is how the Payroll Tax Cut extension has been funded as well. So while you may get an extra $40 in your paycheck , if you buy or refinance a home, you will pay more in interest as a result of the currently little known Guarantee Fee. But you will as lenders layer this in to their rates and you see rates slide up.
If you are wanting to see if it makes sense to refinance or are looking to buy a home, apply now
Branch Manager, Summit Home Mortgage Denver, 303-779-0591 x101