NEW SALLIE MAE REFINANCING TAX

[Kassandra Perez]

Is anyone else pissed or bothered about this new refinance tax that is being forced by Freddie Mac and Sallie Mae?

So now if you do a cash out refinance or that like using the BRRRR method will now be "TAXED" 50 basis points on the new loan. It's called an "adverse market fee" of 0.5% on most refinanced mortgages starting Sept. 1 due to economic uncertainty," is what Sallie Mae stated.

On an average $250,000 home loan, the fee comes to $1,250 to refinance!

It’s seriously frustrating for investors, especially the ones who have a large apartment building or big investment portfolios!

Here is an example of large scale properties:

let’s say you own a 10 million dollar apartment building , you will be charged 50k just to refinance that particular property.

This is a serious slap in the face to home owners and investors who are already struggling with their mortgages during this pandemic.

This will in turn make people not want to invest in properties or encourage people to buy homes.

The whole point of lowering interest rates was to help homeowners and investors stimulate the economy and buy houses and for the government to buy mortgage backed securities not make it harder on EVERYONE!

Is anybody as frustrated as I am?

What are somethings that can come from this?

Does anyone else see a total recession coming in the near future?

Sallie Mae and Freddie Mac really have lost their minds with this one! What are your thoughts?