HARP 2.0
The Home Affordable Refinance Program, HARP, has had some changes this year. Actually, an overhaul that should make it easier for homeowners who are upside down to qualify for a refinance of their mortgage.
The HARP program is only available to homeowners with mortgages held by Fannie Mae and Freddie Mac. One of the important changes is that the old requirement has been lifted that the amount owed on the home must not exceed 125% of the home's value. To qualify:
- Your mortgage must have been sold to Fannie or Freddie on or before May 31, 2009. You can check to see if your mortgage is owned by Fannie or Freddie on their website, under "Loan Lookups". www.FannieMae.com/loanlookup or www.FreddieMac.com/mymortgage.
- You must be current with a good payment history over the previous 12 months.
- You must have a current loan-to-value ratio greater than 80%.
- You must be refinanced into a more stable loan, like from an ARM to a fixed-rate mortgage, or from a fixed-rate loan to another fixed rate that lowers the payment.
Some of the Changes:
- Some of the risk-based fees for borrowers have been eliminated
- There is no need for a new property appraisal where there is a reliable computer automated valuation model estimate.
Most refinances can be done through your local lender, with fixed-rate mortgages and adjustable rate mortgages with fixed terms of greater than five years available. The end date for the revised HARP is December 31, 2013.
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The Highland Group
Chris & Karen Highland * 301-831-9947
Turning Point Real Estate – 301-831-8232
email us: isell4u2@msn.com
Text Us: 301-401-5119