Others traded in mortgages with variable interest rates for fixed-rate mortgages, making managing monthly payments less challenging. After the housing bubble burst, many homeowners saw their home prices drop dramatically.
As a result, many Americans found themselves with mortgage loan balances that exceeded the value of their homes. Despite the controversy surrounding the program, HARP played an integral role in the economic recovery process by strengthening the housing market.
The government made multiple changes to HARP over the years. Unlike HARP 1. So under HARP 2. HARP 2. Plus, it adjusted or waived some fees for homeowners who wanted to reduce their loan terms.
Would the refinance be a disqualifier for the HARP program. I have a Fannie Mae loan from I have never refinanced and my interest rate is 6. I was told my DTI would be too high and I would be denied. Is this true? Fannie's regulator, the FHFA also noted in their release regarding HARP's eventual replacement [Streamline Refinance] that "but as with HARP, eligible borrowers are not subject to a minimum credit score, there is no maximum debt-to-income ratio or maximum LTV, and an appraisal often will not be required.
Of course you can refinance using HARP into a shorter-term loan. While the greatest cash-flow improvements may come from a re-lengthening of the term to a new 30 years, FHFA encourages borrowers to swap to or year terms with lower risk-based fees than those available on terms of 30 years. A HARP refi into a less-thanyear term offers faster equity building, considerable interest savings and lower rates and fees. It's hard to argue with that!
We refinanced our home in to take cash out for our towns' college and weddings. We have excellent credit and have never in 35 years of owning a home been late or missed a payment on anything. My question is why can't we do the no-cost HARP refinance? As well, your loan would need to have an LTV above 80 percent, among other things. The good news is that you don't need HARP to do a no-cost refinance - almost any lender can do one for you by adding fees into the loan amount or with no fees and a slightly higher interest rate.
That said, it's not clear if a refinance will bring you a better rate or terms than you already have; you'll need to run the numbers to see. Yes, provided all the other conditions of HARP eligibility are met. According to HARP. If you meet the other criteria for the program you should contact your existing lender today to see if they participate. If not, shop around for one that does.
We were told that borrowers on a HARP refinance must be living in the home in order to be eligible Is that true? The HARP program is available for your primary residence, which means it must be owner-occupied. If you are not living in the home, it's not your primary residence, and so would be ineligible for a HARP refinance.
In my divorce agreement, I was awarded the family residence in However, my name is not on the title. Libby, I don't that;s possible. What if I am NOT underwater on my mortgage but just need to lower my high interest rate currently 6.
Thank you. Kaye, Do you have a Fannie or Freddie mortgage? If you're not underwater, you can shop around with any mortgage lender, you don't have to be confined to HARP which is a voluntary program.
I'm concerned that my ex-spouse is trying to use the Harp refinance program to remove me from the title of a rental property that is still in both our names. My ex has it rented and makes the payments. Our divorce settlement states that I have no interest in the property except in the case that I have not been paid all the money due me per the settlement. The divorce settlement specifically states I maintain an interest in the rental property until paid in full.
Can I prevent a harp refinance that will remove me from the title? Does receiving any type of government assistance automatically deny my application for a mortgage? Dawn, That's a really good question. Without knowing what kind of assistance you receive or how much, it's hard to say. That said, no government assistance should trigger an automatic denial -- in fact, it could be the opposite since it's considered guaranteed income.
Call me. We lost the phone but have his name. He said we qualified. So let's see They were bailed out. Just another way for big business, once again, to screw people. The new American Democratic way. Well, there is another side to this coin. The government, in all its splendor, legislated banks to decrease the criteria for taking out a mortgage on homes and, in some instances, rental property. What were mortgage companies to do?
Overall is excellent. I love this. But need to improve to explain in deep and listing the factors specifically. Nice work. I am looking for this type of Blog. I want to refinance through HARP. I just want to know that i am eligible.
My mortgage financed under HARP is higher then the value of the home. In the past two years, more 2nd mortgage lenders are subordinating their loans without issue.
Be prepared for long waits of two to six weeks, however, as lenders are inundated with subordination requests. HARP allows you to wrap in closing costs, with limitations. If these limits are exceeded, the borrower will have to pay the extra amount in cash. The exception is if the borrower pre-pays for any fees. Not all lenders will agree to do a principal reduction at closing. In some cases the loan amount has to be sent back through underwriting with a lower loan amount, causing delays.
A borrower may open a , , or year fixed rate HARP loan. Also, 5-, 7-, and year ARMS are available. For instance, you received a year adjustable rate loan nine years ago and it is about to adjust. This will keep your payments lower than if you refinanced into a fixed rate. Make sure your home is not too far underwater.
Otherwise, you would have to opt for a fixed HARP refinance. Fannie Mae stopped offering interest-only loans after the housing downturn. The only options for HARP are fixed and adjustable rate mortgages that are fully amortized, meaning full principal and interest payments are required.
Not all lenders are willing to do that, however. Fannie and Freddie allow HARP loans on primary residences, second homes, and rental properties, as long as the loans are owned by Fannie or Freddie, and meet the other criteria. However, lenders may require a questionnaire from the condo association to prove it is not in pending litigation has a law suit opened against it.
An appraisal may or may not be required. The lender will run the refinance scenario through an automated underwriting system AUS , a computerized system that determines loan eligibility. Part of the function of the AUS is to determine if the loan needs an appraisal or if the requirement for an appraisal is waived.
The AUS makes this decision based on estimated value input by the loan officer, the geographical area, among other criteria. There are increased loan limits for properties with multiple units:. Higher HARP loan amounts are available in some areas. The below limits apply in areas where housing is more expensive, as determined by Fannie Mae.
The difference is as follows:. Remember that homeowners never make their monthly mortgage payment to Fannie Mae or Freddie Mac. In simple terms, the refinance must put the borrower in a better financial position.
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