Last night I left my client’s home after a refinance closing with an awesome feeling. They are saving just shy of $500/month! Yes, you read that correctly. It’s what the HARP loan is all about.
• They lowered their rate from the 6% range to the 4% range
• Their loan to value was higher than 100% (the underwater part-they owe more than the value of their home in today’s market
• They did not need an appraisal
• I was able to cover their closing costs
This is one of the reasons I do what I do for my career, and feeling great about it!
Do call me if you wish to talk over your mortgage situation to see if you can get HARPed 630.362.6405.
One of the problems with the current HARP refinance program is the arbitrary date that they chose as a cutoff (6/1/09). Please sign the attached petition to try to have that date modified or removed altogether. HARP is a fantastic program for borrowers who have little or no equity in their properties but many of them cannot refinance because their loan was sold to Fannie Mae or Freddie Mac after that 6/1/09 date. Please take a moment to sign the petition. You could help your friend, family or even yourself refinance or refinance again under HARP.
While we don’t know the full details of the proposed program until November, I wanted to give you a heads up… if you’d like to take advantage of the HARP program, I’d be happy to check and see if Fannie or Freddie owns your mortgage.
Washington, DC – The Federal Housing Finance Agency, with Fannie Mae and Freddie Mac (the Enterprises), today announced a series of changes to the Home Affordable Refinance Program (HARP) in an effort to attract more eligible borrowers who can benefit from refinancing their home mortgage. The program enhancements were developed at FHFA’s direction with input from lenders, mortgage insurers and other industry participants.
In general, borrowers must meet the following criteria:
- The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
- The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
- The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
- The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.
Also, new highlights include:
* Eliminating certain risk-based fees for borrowers who refinance into shorter-term
mortgages and lowering fees for other borrowers;
* Removing the current 125 percent LTV ceiling for fixed-rate mortgages backed by
Fannie Mae and Freddie Mac;
* Eliminating the need for a new property appraisal where there is a reliable AVM
(automated valuation model) estimate provided by the Enterprises; and
* Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the
Enterprises on or before May 31, 2009.