Local families in California trying to save money by refinancing their homes may get hit with a new fee. However, that cash could turn some renters into home buyers. You pay all sorts of fees when you want to refinance your home, including one to research whether or not you actually own it. The state may add on another fee, but in the end their monthly mortgage payments would be lower since they would have a lower interest rate. The fee would be between $75 and $225 per transaction. The money from the extra fee would go to help people who can barely afford their rent.
The extra fee is expected to raise between $220 million and $300 million to go toward affordable housing projects. The money would go toward maintaining or creating more affordable homes. Some of the money would go toward helping buy homes, including help with the down payment. California has a disproportionately high homeless rate and has about 1.5 million people who do not have access to affordable housing.
Democratic Senator Toni Atkins feels that this bill will help to generate more money for middle income families in the long run. Some people feel that the bill is unfair because only those who are refinancing their mortgages are the ones who will have to pay the fee. The bill was passed by the Senate but the assembly has not heard it yet. A decision will be reached in several weeks.