Home Affordable Refinance Program – Not All Good
Real estate news
HARP 2 – Lifeline for Some Troubled Homeowners?
The government is changing its Home Affordable Refinance Program (HARP), making it easier for homeowners to refinance their underwater, high-interest mortgages.
HARP 2 – Major Features
- Although HARP has helped more than 890,000 homeowners nationwide by reducing their monthly mortgage payments, there are still millions of homeowners who are too far underwater to participate.
- Under the new rules, homeowners who owe more than 125 percent of the market value of their homes will be allowed to refinance into new loans.
- The program also streamlines the refinancing process for homeowners who are current on their mortgage payments and reduces or removes fees that previously hindered them from refinancing.
- Fannie Mae and Freddie Mac also will reduce the fees they charged in the past to enable borrowers to better afford the new loans. Among the fees that will be reduced or eliminated are those for appraisals, title insurance, and closing costs.
- Fees also will be waived for some underwater borrowers who are refinancing into 20-year or shorter-term loans.
- HARP is only open to borrowers who are current on their payments for the past six months with no more than one missed payment in the past 12 months. The loans must have been originally issued before May 31, 2009, and purchased by Fannie Mae or Freddie Mac. Read more
11.2 Million Homeowners Owe More On Their Mortgages Than Their Home Values
home values
According to real estate analytics firm CoreLogic, negative equity continues to be a massive and corrosive problem. During the first quarter of this year, 11.2 million homeowners across the country owed more on their mortgages than the market values of their properties. Read more
Walking Away From Your Home Loan
Real estate market
Sad but true numbers tell the story in real estate:
26% of homeowners defaulted when they could afford to pay their loan.
11.3 million … number of U.S. homeowners whose mortgage balance exceeds the value of their home.
2015 is the year the typical homeowner who is now underwater will have some equity in his home.
14% is the average discount on a home sold by foreclosure vs. its equivalent in a traditional sale.
150 Credit score points that someone with a 780 score could lose are a short sale.
760 credit score you need to qualify for the best rates on a mortgage.
San Diego Realtors
Home Mortage Refi Program for Underwater Homeowners
The accusation can be made that government programs never come in at their projected costs or finish on time. The government’s current Home Affordable Refinance Program is a prime example. The Obama administration’s Home Affordable Refinance Program was scheduled to end on June 10 . Now it will run to June 30, 2011, the Federal Housing Finance Agency said Monday.
The program allows borrowers, who owe up to 25 percent more than their homes are worth, to refinance to lower interest rates. Read more