Whether you’re looking to refinance your home, or to get a fresh start in a new home, it’s important to know the facts about the Home Affordable Refinance Program. The program is designed to help homeowners, even those with poor credit, get into a new home. But the program has changed a bit since its inception, and now there are some requirements that are new to homeowners who qualify. Here are some of the changes that you need to know about.
Fees and costs
During the subprime mortgage crisis of the early part of the twenty first century, the federal Home Affordable Refinance Program (HARP) was put into place. The program helped millions of underwater homeowners with little or no equity in their homes get a new mortgage. It also helped millions of others, with less-than-perfect credit, obtain a new, more affordable mortgage.
The program is now being rolled out by the Federal Housing Finance Agency. It will likely be a while before HARP is replaced by a new program, but there are some notable changes.
The new program will offer some incentives to lenders. These incentives include a $500 bonus incentive payment for each modified loan, and a pay for success fee of one-half percent of the new mortgage. Incentives will also be offered for extinguishing second liens.
While the new program is still in its infancy, the new fee reductions will likely go into effect as soon as possible. These changes will be available for loans that are serviced by participating servicers.
The program also offers a couple of other interesting tidbits, most notably a new loan that is the follicle of all harpies. Those lucky enough to receive this new loan will have access to one of the lowest interest rates on record.
HARP has been a great program that helped millions of homeowners refinance to lower their rates and build some much-needed equity. However, HARP was not the only solution to this problem. This is a good time to check your eligibility and see if you qualify for any of the new programs before they are gone. A home refinance could save you thousands of dollars over the life of your loan.
HARP (Home Affordable Refinance Program) is a federal program that was put in place by the Obama administration to help struggling homeowners refinance their homes. This program was created after the 2008 housing bubble burst and left many Americans with underwater mortgages.
HARP allows homeowners to refinance into a more affordable home loan, or switch an adjustable rate mortgage (ARM) to a fixed rate option. The loan must be guaranteed by either Freddie Mac or Fannie Mae, two government-sponsored enterprises.
HARP has undergone changes since the program was launched. In 2011, the program was simplified and increased the number of loans that qualify for the program. The program’s new guidelines focus on the equity of the home, and whether the borrower can make the new mortgage payments.
Homeowners may qualify for HARP if they are current on their mortgage payments and have not been late on any payments in the last six months. They also must have a secondary, single-unit residence.
Homeowners who qualify for HARP may be able to get a better rate on their mortgage and can avoid paying for private mortgage insurance (PMI). They may also be able to refinance more than once. The interest rates are still relatively low, and homeowners may be able to lock in a lower rate before rates increase.
HARP requires no credit score or minimum loan amount. In fact, the income requirements are much less stringent than those of other refinance loans. However, lenders may require higher credit scores.
Homeowners who qualify for a HARP refinance can avoid paying private mortgage insurance, or PMI, and can move from an adjustable rate mortgage to a fixed rate. The new refinance plan is expected to make mortgages more affordable, and reduce the credit risk exposure of Fannie Mae and Freddie Mac.
Getting a home loan from Fannie Mae or Freddie Mac isn’t as hard as you might think. With the help of your mortgage broker, you can enjoy a better rate and a newer mortgage. In addition to your primary residence, you can even refinance your vacation home or second home.
There are many reasons to refinance your existing mortgage, but one of the most common is the desire to keep the cost of your mortgage down. The best part is that you can qualify for a loan with as little as a 3.5 percent down payment. Moreover, you may be eligible for a new home loan at a rate akin to that of a refinanced mortgage.
Before you begin your quest for a new home loan, check with your current mortgage broker to ensure that you’re eligible for the program. If you’re not, you might be putting your dream home in jeopardy. The home affordable refinance program may be your ticket to the American Dream. The program is extended through September 30, 2017. With a little legwork and a little luck, you could be a homeowner in no time.
Getting your hands on the best home loan possible is the best way to keep your family’s financial future in the family. For more information, you can get in touch with the pros at Silver Fin Capital, an award winning mortgage broker located in New York City. With offices in Manhattan, Queens and Brooklyn, you can count on a dedicated mortgage specialist to keep your home afloat. To make the process as smooth as possible, take advantage of Silver Fin Capital’s complimentary pre-approval loan review service.
HARP 2.0 guideline changes
HARP 2.0 is a new program that allows homeowners to refinance their mortgages without an appraisal. The program allows homeowners to subordinate their second mortgage, which was previously difficult.
It was hoped that HARP 2.0 would allow more Americans to refinance. However, HARP 2.0 is limited to those with a loan that was purchased by Fannie Mae or Freddie Mac before June 2009.
The program is designed to help homeowners with little equity. Underwater homeowners owe more on their property than it is worth. A HARP loan can help these homeowners refinance to a lower interest rate. It also allows homeowners to replace their mortgage loans with new loans without having to undergo an underwriting process.
In November 2011, Fannie Mae and Freddie Mac announced that they would be making changes to their HARP guidelines. They would allow more homeowners to qualify for a refinance and remove the loan-to-value cap. These changes could bring an additional $200 billion to $300 billion in loan originations in 2013.
The HARP 2.0 guidelines have eliminated the requirement that the mortgage balance be at least 25 percent of the home’s value. In the past, this was the primary obstacle to refinancing.
Another change involves the removal of the requirement that homeowners have a mortgage with an interest rate of at least 6 percent. Fannie Mae and Freddie Mac say the new rules will improve the stability of loans. They have also removed the requirement for homeowners to have large deposits.
The HARP 2.0 program has also eliminated risk-based fees. Previously, these fees were assessed on the basis of your loan-term. HARP 2.0 eliminated these fees for 30-year mortgages.
Alternative refinance programs
Several alternative home affordable refinance programs have been created to help at-risk homeowners. With these programs, borrowers can obtain better terms on their mortgage and avoid foreclosure.
These programs are not available to everyone. Lenders have different eligibility requirements, so it’s important to check before applying.
The federal Home Affordable Refinance Program (HARP) was created to help homeowners who are struggling with falling home values. HARP helped over three million American homeowners refinance into lower interest rates. While this program is no longer in operation, there are several alternative refinance programs that are available.
One of the alternatives to HARP is Fannie Mae’s High LTV Refinance Option (HLRO). This program is designed to help homeowners with low equity. If you are current on your Fannie Mae mortgage payments, this program can help you refinance into a lower interest rate.
Freddie Mac’s Enhanced Relief Refinance (FMERR) program also helps homeowners with low equity. However, it has been put on hold due to a low number of applicants.
The USDA Streamline Refinance Program is another alternative to HARP. This program offers a number of benefits, including a streamlined application process and no appraisal report. However, this program can only be used to refinance existing FHA, VA, or USDA loans.
Other refinance options are also available, including mortgage brokers, loan aggregators, and direct lenders. Make sure you shop around to find the best rate and terms for your loan. Taking advantage of these programs can help you avoid foreclosure and lower your monthly payments.
Before applying, make sure you understand the tax implications of mortgage modification. Lenders will want to see proof of your current income and other monthly debts.