Showing posts with label 2.0 HARP. Show all posts
Showing posts with label 2.0 HARP. Show all posts

The New 2012 Home Affordable Refinance Program (HARP) for Kentucky Mortgages






The New 2012 Home Affordable Refinance Program (HARP) for Kentucky Mortgages

Upside down on your Kentucky  home? 

Do you currently owe more on your home then what it is worth due to the current housing market?  If you do, you are not alone.  There are thousands of homeowners across the country that are in the same financial position.  These same people would love to reduce their interest rate, save finance charges, and lower their monthly payments but feel they can’t since their home has significantly reduced in value.  In some cases, families may owe 50% more then what their home is worth!  For example, a family may owe $150,000.00 on their home that they purchased 4 years ago.  At the time they purchased their home, the home was worth $200,000.00.  Now, due to foreclosure, short sales, and the current economic situation we are facing in theUS, their home is now worth $100,000.00.   A tough situation that now has a solution. 
On October 24, 2011, the Federal Housing Finance Agency, Fannie Mae, and Freddie Mac announced upcoming changes in the HARP program (Home Affordable Refinance Program) to attract more eligible home owners to refinance their home and save their hard earned income. 
The new enhancements to this program are as follows:

You May Be Eligible For the  HARP Program If:

1) Your home loan is owned or guaranteed by Fannie Mae or Freddie Mac.  
2) Your loan was sold to Fannie Mae or Freddie Mac before May 31, 2009.
3) You are current on your mortgage payments.
4) You owe more than your home is worth, or is there minimal equity in your home.
5) You have made all of your mortgage payments on time in the last 6 months.
6) You have had NO sixty (60) day late payments in the past 12 months.



  • Eliminate certain risk-based fees for home owners who refinance into shorter term mortgage and lowering fees for others
  • REMOVING the current 125% loan to value (what is your LTV?  refer to the formula at the bottom of this article) ceiling for fixed rate mortgages backed by Fannie Mae and Freddie Mac.  This is huge as it allows borrowers who fit in the example illustrated in the beginning of this article to now take advantage of these lower interest rates through a refinance.  Before, the home owner would just be turned down for financing.  Now, if they owe 50% more then what their home is worth, they could save through rate reductions.
  • Eliminating the need for a new appraisal where there is a reliable automated valuation model (AVM) providing a credible current market estimate of the property value.
So how do you know if you qualify for this program?  Here are the guidelines:
  • You have a mortgage owned or guaranteed by Fannie Mae or Freddie Mac.
  • Owe more then your home is worth.
  • You do not have an FHA, VA or USDA loan.
  • You are current on your mortgage payments and have not been more than 30 days late making a payment over the last year.
  • The refinance will improve the long-term affordability or stability of your mortgage.
  • You have the ability to make the new payments.
  • Must have a loan originally sold to Fannie or Freddie on or before May 31, 2009
The finalized details associated with the removal of the current 125% LTV ceiling and other guidelines will be published on or before 11/15/2011.  Until then, you can refer to the link below for further research.
Do you have a Fannie Mae or Freddie Mac loan?  Find out here.  Very simple.
http://www.FannieMae.com/loanlookup/ or call 1-800-732-6643
https://www.FreddieMac.com/corporate/ or call 1-800-373-3343

my







Fill out my form!

HARP: A Lot of Hype or a Big Help - Your Questions Answered



Fill out my form!

HARP 2.0 Refinance Guidelines for Fannie Mae and Freddie Mac Louisville Kentucky Mortgage Loans


\

Louisville Kentucky Mortgage Loans

FHA, VA, KHC, Rural Housing, USDA, Fannie Mae Mortgage Loans

HARP 2.0 Refinance Guidelines for Fannie Mae and Freddie Mac Louisville Kentucky Mortgage Loans






Harp 2.0 refinanceBankrate.comHARP 2.0 refinance



--

Joel Lobb
Senior  Loan Officer
(NMLS#57916)


 phone: (502) 905-3708
 


Updated Guidelines for HARP 2.0 Refinance of Louisville Kentucky Mortgage Loans



Updated Guidelines for HARP 2.0 Refinance of  Louisville Kentucky Mortgage Loans 


What is HARP / HARP 2 ?

HARP stands for Home Affordable Refinance Program, an initiative from the Federal Housing Finance Agency (FHFA) to assist Louisville, Kentucky and  other Kentucky homeowners whose homes are now worth less than what they owe.  And just recently, new enhancements to the program were announced, making refinancing options available again to an estimated one million more homeowners (HARP 2 will be readily available starting March 15, 2012).

If you are a responsible homeowner but the current marketplace loan-to-value (LTV) requirements and need for a new appraisal have made it difficult or impossible for you to refinance at today's record low interest rates, Mortgages Unlimited may even be able to help you without needing a new appraisal or meeting previous LTV requirements. 

The HARP Refinance Program is designed to help up to 9 million American families refinance their loans to a payment that is affordable now and into the future. This program is aimed at helping responsible homeowners "refinance" their loans to take advantage of historically low interest rates. Here are some common Questions and Answers about the Refinancing Initiative in the program.

Do I qualify for a Home Affordable Refinance - HARP?

Who is eligible for HARP? You may be eligible if:


  1. The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
  2. The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
  3. 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.
  4. The current loan-to-value (LTV) ratio must be greater than 80%.
  5. 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.






How do I know if my loan is owned or controlled by Fannie Mae or Freddie Mac?
Simply call or E-Mail me. I'll help you determine if your mortgage is backed by Fannie Mae or Freddie Mac, or 


I owe more than my property is worth. Do I still qualify to refinance under the HARP Special Refi Program?
Yes. 
Eligible loans will include those where the 
first mortgage exceeds the current market value of the property.
If I am behind (delinquent) on my mortgage, do I still qualify for the HARP Refinance Initiative? No. But the good news is, you may qualify for the Modification Initiative. Contact me to discuss your situation and review your options.
I have both a first and a second mortgage. Do I still qualify to refinance under HARP affordable Refi program?Yes. Technically, the amount owed on the second mortgage doesn't matter, but the 2nd mortgage lender does need to agree to subordinate their loan. Talk to your Loan Officer about your second mortgage.
I have both a first and a second mortgage. Can I combine these into one new loan under the HARP program?NO. You can not combine these two (or more) loans into one. The HARP program will only refinance the existing first mortgage.
Will refinancing lower my payments? That depends. If your interest rate is much higher than the current market rate, you would likely see an immediate reduction in your payment amount. However, if you are have an adjustable loan, or are paying interest only on your current mortgage, you may not see your payment go down. BUT... you will be able to avoid future mortgage payment increases and may save a great deal over the life of the loan.
What will the interest rate be? The interest rate will be based on market rates at the time of the refinance. Currently, interest rates are at historical lows, which makes this a good time to examine your refinancing options.
Will refinancing reduce the amount that I owe on my loan? No. Refinancing will not reduce the principal amount you owe. However, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.
Can I get cash out to pay other debts?No. Only standard closing costs (appraisal, title, credit report, state taxes, lender fees, etc) may be included in the refinanced amount.
Do I need to pay closing costs?YES. HARP refinance loans have closing costs just like any other refinance. Like other refinance transactions, you can pay the costs out-of-pocket, roll them into a slightly higher loan amount (most common), cover them with a slightly higher interest rate, or any combination of these options. Check with your Loan Officer, as there are a few restrictions.
I am really far underwater on my mortgages, can I still use HARP?YES. Under the new HARP 2.0 (Starting December 1, 2011). Under the old HARP rules, you were capped at 125%. Now you can be really far underway and still qualify for HARP
What is the maximum loan amount? I have / need a jumbo loan?The maximum loan amount is the same as the maximum loan amount in your area. For 95% of the country, this is currently $417,000 (Check loan limits - Select Fannie/Freddie under the "limit type" option)
I heard adjustable mortgage refinances are different?YES. If you choose a new adjustable loan, you are capped at 105%. Only fixed rate refinance loans are unlimited.
My current loan is FHA, can I use HARP?No. Only loans that are backed by Fannie Mae or Freddie Mac are eligible. FHA loans, VA loans, USDA Rural Development, and many private loans, like the ING Orange ARM loans are NOT eligible.
My current mortgage company says they are the only ones that can help me refinance with HARP. Is this true? Do I have to use my current lender?No. You can use any participating lender you want in the vast majority of cases.
I put over 20% down originally, so I have no PMI. Will I have to have PMI on the new loan? No. That is one of the best aspects of HARP. If the original loan did NOT have mortgage insurance, the new loan does not need mortgage insurance, not matter how underwater you are.
Can I refinance my second / vacation home or a rental / investment property with HARP?YES. That is allowable. You just need to meet all the other standard Home Affordable Refinance program guidelines
How do I apply for the Home Affordable Refinance Initiative? 
Apply for HARP online, call or visit my office to discuss your specific situation and to examine your options. If this plan is right for you, we can begin working on your refinance immediately.
As part of the discussion, we may need to look at the following information:
  • Recent pay stubs to help determine your gross (before tax) household income.
  • Your most recent income tax return.
  • Information about any second mortgage on your house.
  • Account balances and minimum monthly payments due on all of your credit cards.
  • Account balances and monthly payments on all other debts, such as student loans and car loans.
As always, if you have any questions or would like to discuss how this may specifically impact you, I'd be happy to sit down with you. Just call or email me to set up an appointment.

Do I qualify for a affordable refinance? Answer these questions:

  1. The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
  2. The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
  3. 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.
  4. The current loan-to-value (LTV) ratio must be greater than 80%.
  5. 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.
If you don’t know contact:



\


Fill out my form!

Louisville, KY HARP Mortgage Lender New HARP could help up to 6.7 million - WDRB 41 Louisville - News, Weather, Sports Community

New HARP could help up to 6.7 million - WDRB 41 Louisville - News, Weather, Sports Community

Louisville, KY HARP Mortgage Lender



Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*


By Peter King
Provided by
 
Recent changes to HARP mean that some 6.7 million homeowners will be eligible to refinance their mortgage to a lower interest rate under the government-backed program.
That's according to a new analysis by the real estate analytics firm DataQuick. The company estimates that's how many borrowers could potentially benefit from a recent change to the program that allows borrowers to refinance regardless of how far underwater they are on their mortgage.
Limit on underwater refinancing removed
Mortgage servicers are currently implementing several changes to the program, which were announced by the Obama administration last fall. Chief among them is the elimination of a limit on how far underwater a homeowner can be on their mortgage and still qualify for the program.
Previously, the balance on mortgages refinanced through HARP could not exceed 125 percent of the home's current value; the changes announced last fall eliminated that cap entirely. Homeowners must still be current on their mortgage payments to qualify.
More options for borrowers
Other changes to the program were designed to make it easier for homeowners with private mortgage insurance (PMI) to refinance or to obtain a HARP mortgage refinance with a lender other than their current mortgage servicer.
In addition, new limits were placed on the fees lenders could charge up front for refinancing a low-equity or underwater mortgage, known as loan level pricing adjustments. The new rules limit such fees to a one-time charge of 0.75 percent of the loan balance, down from 2.0 percent previously, and completely eliminate such fees on mortgages refinanced into a term of 20 years or less.
Will lenders go along?
Although the new rules have been out for several months, many lenders are still incorporating them into their mortgage refinance programs. Even so, it's not clear how many homeowners will actually benefit. The program is voluntary for lenders, and many homeowners who have applied for a HARP refinance in the past have been turned down despite qualifying under the official guidelines.
That's because even though HARP has its own set of guidelines for which mortgages will be approved for refinancing, lenders have their own guidelines as well, which may be considerably more stringent. As a result, to date only one million homeowners have been able to refinance their mortgages under HARP, compared to a projected 4-5 million when the program was launched in spring 2009.
HARP stands for the Home Affordable Refinance Program, which is designed to enable homeowners with little or no equity to refinance their mortgages to the historically low interest rates that have been available over the past two years.



Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

HARP stands for the Home Affordable Refinance Program which was a government sponsored initiative released in March of 2009 by President Obama in response to the needs of homeowners suffering during the mortgage crisis. The Louisville, KY HARP Mortgage is a part of the Making Home Affordable Program that was created to provide payment relief to Louisville, KY homeowners that were behind on their mortgages due to financial hardships and the opportunity for Louisville, KY homeowners that were under water on the their mortgages.
Since many Louisville, KY homeowners were caught in a time period of rapidly declining property values there was a need to create a refinancing opportunity for those that lost significant value in their properties but made their mortgage payments on time. The intended benefit of the HARP Mortgage was to make refinances available to Louisville, KY homeowners that were under water on their homes that would lower their interest rates and payments. It was believed that the Louisville, KY HARP Mortgage would also protect Louisville, KY homeowners from their existing toxic adjustable rate and interest only loans with opportunities for more stable fixed rate mortgages. For those Louisville, KY homeowners that were doing well financially and simply under water on the mortgage, the HARP Mortgage offered a lower interest rate on a reduced mortgage term which would help the borrower erase negative equity within a much shorter period of time.
There were high hopes for the HARP Mortgage and while it helped thousands of homeowners to reduce their interest rates, lower their payments and get out of loans that could suddenly adjust the monthly payments upwards, the 125% negative equity ceiling did not allow millions of homeowners that had greater losses in property values to take advantage of the program. In theory, there was nothing wrong with the HARP Mortgage Program. The 125% loan to value restriction left a lot of good paying Louisville, KY mortgage holders out of the opportunity to refinance at the low market interest rates. If there are any knocks on the way the program was originally written it would have to be that the equity ceiling was a little short sighted. The HARP Mortgage did not help enough of the Louisville, KY homeowners that it was designed to. In March of 2012, the rules for the HARP Mortgage have changed and the combination of historically low interest rates and a significant equity guideline change, it is believed that millions more homeowners will get the help that they deserve


Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*


Louisville, KY HARP Mortgage Lender


Fill out my form!