I recently had a number of clients ask me about if they can qualify to refinance under the new HARP 2.0 guidelines. I have already had one client refi and it saved him over $200/month. The break even for him was 20 months so they went ahead and did it.
Below is a great post from Kelly Zitlow of Cherry Creek Mortgage discussing the HARP 2.0 Refinance Program which is designed to help underwater home owners.
“On October 24, 2011 the Federal Housing Finance Agency, with Fannie Mae and Freddie Mac, announced a series of changes to the Home Affordable Refinance Program (HARP) in an effort to attract more eligible Arizona borrowers who can benefit from refinancing their home mortgage in Arizona. The program revisions were developed with input from mortgage lenders, mortgage insurers, and other mortgage industry participants. It is currently slated to become effective Dec. 1, 2011 but may take a little longer for banks and investors to beable to process the loans.
Key Points for Arizona homeowners in the HARP program:
- HARP is raising the loan to value (LTV) ceiling for Fannie Mae & Freddie Mac backed mortgages. Actual loan to value ratios will be able to exceed 105% with more details to come from banks and investors in the weeks to come.
- The elimination for the need of appraisals where there is a reliable automated valuation model.
- Extension of the end date for HARP until Dec. 31, 2013 for loans orginally sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
- HARP is unique in that it is the only mortgage refinance program that enables Arizona borrowers who owe more than their home is worth an opportunity to take advantage of historically low interest rates or get into a more stable loan product.
HARP Eligibility for Arizona Homeowners:
- The existing 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 program is available to Arizona homeowners for loans with loan to values above 80%.
- Arizona borrowers must be current on their mortgage payments with no late payment in the past 6 months and no more than 1 late payment in the past 12 months.
1st STEP – CHECK YOUR CURRENT LOAN’S ELIGIBILITY!
2nd STEP – IF YOU MEET THE ABOVE ELIGIBILITY AND YOUR LOAN IS OWNED BY EITHER FANNIE MAE OR FREDDIE MAC.
- Call or email me immediately.
- My team and I, will walk through everything with you and what the next steps to taking advantage of HARP will be for you.
This is currently a fluid situation with more information concerning the HARP Refinance Program to come. I will continue to update you as we learn more.”
Thank you Kelly for the great information. With mortgages at record low interest rates it is definitely worth looking into because it could save thousands of dollars over the life of the loan.