HARP Rules Will Ease Mortgage RefinancingPosted by Sargent Owen on February 15th, 2021 mortgage broker footscray (FHFA) has partnered track of Department in the Treasury to reintroduce the Home Affordable Refinance Program (HARP). HARP is pushing the bar in order to help borrowers, who're incapable of be eligible for refinancing due to the declining home values, to refinance their current mortgages right into a lower monthly interest and/or a more stable mortgage product. This is fantastic news for homeowners within the South Florida area who may have desired to refinance their current mortgage who have been not eligible due to strict underwriting guidelines. In my last week's blog posting, I discussed another refinance program that's hot within the Miami market, the Fannie Mae DU (desktop underwriting) Refi Plus. HARP is just mortgage broker newport with the several refinancing possibilities to homeowners. Since the inception of HARP, in April 2009, Fannie Mae and Freddie Mac are actually capable to help approximately nine million families refinance right into a more affordable or higher sustainable mortgage product. Out of all of the refinance solutions, HARP is regarded as the unique in that it does not take only program that permits refinancing for borrowers who owe over their current property is worth. Benefits for the borrower include reduced rates minimizing monthly payments. a knockout post is niagra program can result in increased stabilization from the Miami real estate market. A series of changes for the program were announced today as a way to expand the range of eligible borrowers. Below are a few program enhancements: --Removing the present 125% loan-to-value for a fixed interest rate mortgage back by either Fannie Mae or Freddie Mac. --Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages. --Excluding the requirement of new property appraisal where there can be a reliable AVM (automated valuation model). One of the important elements of the above changes is the reduction of certain risk-based fees, allowing borrowers to look at advantage of the shorter-term mortgages. This is fantastic news for borrowers who owe more than their current house is worth. These homeowners will be able to reduce their principal balance owed considerably quicker by shortening the word of the mortgage note. Also, by reducing the rate of interest, their payment per month usually stays near their current payment or it could be use a lower monthly payment. Even if your payment is the same, this will likely permit you to pay less interest on the bank and much more towards your principal balance thus creating equity sooner, in lieu of later. This program is defined to enter effect by November 15, 2011 and presently set to expire on December 31, 2013. Now almost you can now refinance their home!! I have compiled a listing of eligibility criteria to your review: --Mortgage have to be owned or guaranteed by either Freddie Mac or Fannie Mae. --Cannot be refinanced under HARP previously unless it turned out a Fannie Mae loan from March-May 2009. --Current loan-to-value have to be more than 80%. --Must be current on the mortgage before refinance, no late payments inside the past half a year, no greater than one overdue inside past yr. --Condominiums which can be already eligible under HARP that originally qualify. The first step to the borrower would be to learn if their mortgage is owned or guaranteed by Freddie Mac or Fannie Mae. If you are not sure where you should look, either speak to your current lender or possibly a seasoned licensed mortgage loan officer. Refinancing may be a great selection for you at this time!Like it? Share it! More by this author |