Are you wondering whether or not you are eligible to refinance under the new HARP 2.0 guidelines? Have you heard about HARP 2.0 but are confused about what it actually is? We'll shoot to answer all of your questions about HARP 2.0 and then some with this video starring our very own James Wade. Just another way Quicken Loans is Engineered to Amaze!
http://leafgardenpress.com/ HARP 2.0 Questions Answered - Watch-It Wednesday
Bob Walters, chief economist for Detroit-based Quicken Loans, said it's "more myth than reality" when people talk about incredibly tight lending standards today and how impossible it is to qualify for a mortgage. Basically, Walters said getting a ... Lay the Groundwork for a New Mortgage
Millions of today's homeowners are currently underwater on their mortgages, owing more than their homes are worth. This year the HARP program (Home Affordable Refinance Program) has been re-vamped to allow more homeowners to be able to refinance their mortgages.
This is great news, as Corelogic estimates that 11 million homeowners are underwater and could benefit greatly from some assistance. The new changes to HARP will allow the homeowner to refinance regardless of how much their home has dropped in value.
There are some guidelines in place in order to refinance under HARP. In order to be eligible:
- The mortgage must be owned by Fannie or Freddie (and originated before June 1, 2009)
- The mortgage must have been paid on time for the last 6 months, and have no more than 1 30 day late in the last 12 months
- The current loan-to-value ratio must be over 80%
- Previous participants in HARP are not eligible to participate
This is GREAT news for the homeowners who have kept up with their payments!� These homeowners can move forward in the program right away.
Remember, this program is available through December� 2013.� Even if a homeowner currently has some recent late payments showing up on his credit report, if they can get and stay current,� they can� eventually take advantage of HARP to refinance their home.Fees have been reduced for HARP loans, and in most cases, an appraisal is not needed.� Lenders can utilize� Automated Valuation Models (AVM's)� to instantly determine the home's value.
Lenders must then show that the homeowner reaps at least one of these benefits by being able to participate in HARP:
- The new loan will reduce the size of the monthly payment
- By refinancing, the loan will changed to a more stable loan product (an example of this would be from an ARM to a fixed rate)
- The new loan reduces the interest rate
- The refinance moves the loan to a shorter term
These new changes are expected to help millions of homeowners refinance to a more manageable, stable loan, and allow them to stay in their homes and avoid foreclosure. This will be welcome news to the many people who are struggling to keep up with their mortgage payments.
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