Guest blogger, Carolyn Plummer, sheds some light on mortgage options for people looking to stabilize from fluctuations in the market.
Refinancing to correct market fallout
Do you owe more on your loan balance than your home is worth? Are you ready to refinance, but were told previously that you did not qualify due to the declining value of your home? You may be able to refinance to a lower rate under the Federal Housing Finance Agency’s Home Affordable Refinance Program (HARP). This program provides refinance opportunities to borrowers who have demonstrated an acceptable payment history on their mortgage, but due to declining home prices are unable to refinance to obtain a lower payment or move to a more stable loan program. This program offers fully amortized fixed rate mortgages with terms up to 30 years. Refinancing now, while rates are at historic lows, may save you money each month on your mortgage payment. HARP has been retooled to allow homeowners who are underwater on their mortgage to refinance under new guidelines.
To qualify for a HARP refinance, borrowers must meet the following criteria:
– The mortgage must have been owned or guaranteed by Fannie Mae or Freddie Mac on or before May 31, 2009. I can check on this for the borrower if not sure whether Fannie Mae or Freddie Mac owns your loan.
– The mortgage could not have been refinanced under HARP previously, unless it was a Fannie Mae loan that was refinanced under HARP from March 2009 to May 2009.
– The current loan-to-value (LTV) can be greater than the previous limit of 125% LTV for primary single-family residences. For second homes and investment properties, the max LTV is 105%. LTV cap requires minimum credit scores and additional requirements also apply.
– Borrowers must be current on their mortgage payments with no late payments in the previous 12 to 24 months depending on LTV.
– All existing subordinate financing must re-subordinate.
Limited Time to Act
This program expires at the end of 2013 so it is important to take advantage of this opportunity now. Please contact me to discuss your eligibility. Here is statistical information on what is happening with HARP.
Carolyn Plummer is a mortgage professional with Prospect Mortgage. She has been in the mortgage industry for 25 years. Carolyn can be contacted at 858-550-2541 or Carolyn.firstname.lastname@example.org.
Equal Housing Lender. Prospect Mortgage, LLC, NMLS #2396. I am a licensed mortgage originator, NMLS# 300310, and am licensed to originate loans in California. To learn more, visit my Prospect Mortgage website at: myprospectmortgage.com/cplummer.