Rates are flat today. Today’s comparison mortgage rates with no lender fees are 4% on a 30 year, 3.375% on a 15 year and 2.875% on a 5/1 ARM. (click here for details)
I have some great news today! As of yesterday, we just got one step closer to the release of the new HARP 2.0 program that is set to help millions of underwater homeowners. Fannie Mae and Freddie Mac sent out an announcement to lenders on their guidelines on the new and improved HARP program.
Check it out in today’s video:
Here are a few guidelines that you should be aware of that really jump out at me. This program will help a lot of people but not everyone, so pay attention to the guidelines.
1. The biggest one is obviously the removal of any LTV,CLT or HCLTV ratios on fixed rate mortgages up to 30 years. So just to clarify, you can be at a 300% loan to value and still refinance your house as long as you meet all the other guidelines. This is huge!
2. The other guideline that really jumps out is the fact you do not need to income qualify as long as your payment doesn’t increase by more than 20%. You still need to be current on your payments for the last 6 months and only 1 x 30 in the last 12, but you won’t need to document any income if you are making your payments.
3. You will also be able to get an automated type of appraisal that could be used for value instead of a full appraisal. It just keeps getting better!
Before you get all excited let’s cover a few situations that will not allow you to use the new an improved HARP loan.
1. You cannot consolidate multiple mortgages with the HARP refinance program. It’s for first liens only. All subordinate/junior liens must be re-subordinated to the new first mortgage.
3. This program is not meant to save your home from foreclosure! There are other programs for that. You must be current on your payments.
So again, those are just some of the major highlights of this program. I know that as soon as this program is released there will be a mad dash to get your loan done. Plan ahead people! Call your lender today and go through your specific situation and find out if you qualify. If you do, get on a list to be one of the first people to take advantage of this. The sooner you get it done the sooner you can see some relief from that high rate.
Read the full Fannie and Freddie announcement. I will keep you posted on the progress of this program and any changes that are made. Let’s hope there are no investor overlays that will dramatically restrict the reach of this program.
Let’s change the way people shop for a mortgage…forever!
PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002