(CNN) — Record low mortgage rates have many people considering refinancing their homes.
But those looking to refinance are likely to get hit with a new fee.
Starting in December, Fannie Mae and Freddie Mac will be charging a “Adverse market” fee.
It adds .5-percent of the total loan amount.
According to the Mortgage Bankers Association, that ends up being roughly 1,400 dollars on average.
The fee was initially set to take effect at the beginning of September.
On Tuesday regulators pushed it back to December first.
The Federal Housing Finance Agency says the fee is related to coronavirus-related economic uncertainty.
It says it’s needed to help pay for support given to homeowners through forbearance programs and foreclosure and eviction moratoriums.
Loans with balances less than $125,000 will be exempt.
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