If there’s a possibility that your mortgage will be sold to Fannie or Freddie (over 2/3 are), then you’ll have a .5% fee added to the costs of refinancing your home. The fee won’t effect loans less than $125K or jumbo loans (too high for Fannie or Freddie). Also those with VA or FHA loans will be exempt.
Of course we’re alerting our clients, partners and reader because of tax implications. This fee, like others, is deductible for those who itemize or is using the property for rental income. As always consult with your tax professional to learn this fee will possible affect your tax return.