By Jim Enright

New HARP Revisions (Home Affordable Refinance Program) will work.

By Jim Enright Posted November 28, 2011 at 7:31 pm

If your property (or someones  you know) didn’t qualify for a low rate refinance before,
this is worth checking out right now.

HARP started in 2009 and had less than desired results because of falling home values.
This meant that many people who put down 20% when purchasing were now required
to obtain mortgage insurance or make an additional principal payment to keep their loan
at a 20% equity level.

Thousands of borrowers across the nation did not refinance, even though there was a
significant rate benefit.  The additional monthly mortgage insurance payment wiped out
or reduced the savings enough to say no.

Not so anymore!

The big and welcome changes:

1- Unlimited Loan To Home Value ratio’s. Yes, unlimited.
Unless you refinance to an ARM, and then it’s 105%

2- If you didn’t have mortgage insurance when you purchased
because of a 20% down payment (and not because of a 2nd mortgage),
you will not be required to have MI now.

If you had MI before, you’ll have it again at the same terms.

3- The rates and pricing is to be the same as regular loans.

4- You can refinance investment and vacation homes with HARP also.

5- You can use ANY lender to refinance.

Here are the three main qualifying factors:

1) Your loan must have a securitization date before June 1, 2009.

2) Your loan must be owned either by FNMA or FHLMC.

3) You must be on time with mortgage payments the last 6 months
and 11 or the last 12 months.

There are other “details” to the program, but if you pass these three,
call a lender and find out how much you may be able to save.

 

 

 

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