Rates are down today. Today’s comparison mortgage rates with no lender fees are 4.125% on a 30 year, 3.5 % on a 15 year and 2.875% on a 5/1 ARM. (click here for details).

If you are shopping for the best mortgage rates today, listen up! There will be an aid package announced tomorrow for Greece. If this aid ackage is considered good, we could see stocks get a big boost tomorrow, and the bond market could take a hit. This could mean higher rates tomorrow. Remember – rates go up a lot faster than they go down. Take that into consideration when you think of locking.

Now that that’s out of the way, today I’ll discuss the improvements that were made to the current HARP programs to help more home owners refinance their underwater homes.

I break down HARP 2.0 today’s episode:


(Watch it on your mobile phone or email reader here)

For the complete announcement from the FHFA, click here.

So, what’s changed in the new HARP program?

The biggest and most talked about change is the removal of any loan to value (LTV) restrictions. The current LTV ceiling is 125%, and the new program will not have one. However, the new program is only for those with an 80% LTV or higher. This is supposed to help out people that really need this program.

Another nice feature is the reduction in const and risk based fees associated with this loan. This is always a good thing! You may even be eligible for no appraisal if you can get an approved automated value. That alone could save you $400 in out of pocket costs.

President Obama also mention of reduced underwriting guidelines for HARP. Lenders may only be required to use verbal verification for your source of income. That could be great, but I want to see how this one plays out.

In order to qualify for this enhanced program you must be current on your mortgage payments for the last six months and only 1×30 in the last twelve months. So if your current lender told you in the past that you must be 60 days past due in order to refinance and you took their advice, you won’t be eligible.

Those are just some of the highlights on the new program. There are more details coming out on November 15th. Stay tuned for further announcements and analysis.

The one thing I do like about this program is that it will be available to all lenders who originate.

Why is this a good thing?

Because it generates competition!

If you thought this was helpful, I would love to have you help bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.

Let’s change the way people shop for a mortgageā€¦forever!

– Mike

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

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