If you are wondering what this means...and if you can benefit...here is some helpful information. The President's proposal is not a new program, but a revision to the current Home Affordable Refinance Program (HARP).
One of the biggest changes under new HARP provisions: Now Homeowners can refinance no matter how “underwater” they are!
Next, an Appraisal is not necessary IF Fannie Mae or Freddie Mac can electronically estimate the value through their valuation models, saving YOU Time & Money!
Keep in mind that these updates to HARP apply only to people whose mortgage is currently secured by Fannie Mae or Freddie Mac...and whose loan was securitized by Fannie Mae or Freddie Mac prior to May 31, 2009. How do I know if my loan is owned or has been guaranteed by Fannie Mae or Freddie Mac?
Loan Lookup for Fannie Mae: www.fanniemae.com/loanlookup
Loan Lookup for Freddie Mac: www.freddiemac.com/mymortgage
Below are most of the highlights of the new changes to the HARP Program:
•There is no longer and Loan-to-Value cap of 125%
•The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
•The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
•The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
•The current loan-to-value (LTV) ratio must be greater than 80%.
•The borrower must be current on the mortgage at the time of therefinance, with no late payment in the past six months and no more than one late payment in the past 12 months.
•Condominiums are already eligible under HARP.
•Appraisals are waived where an Automated Evaluation can be obtained.
•Borrower can go to any lender offering the HARP program and doesnot have to go to the lender that currently services their loan or the lender that originated their loan.
•The property must be the borrower's primary residence.
•The HARP Program will be extended until December 31st, 2013.
•There will be no Loan Level PriceAdjustors if the borrower refinances into a shorter loan term and lower Loan Level Adjustors for others. (This equates into a lower interest rate)
Helpful Links:
http://www.fhfa.gov/webfiles/22721/HARP_release_102411_Final.pdf
http://www.makinghomeaffordable.gov/ or call 1-888-995-HOPE (4673)
http://www.knowyouroptions.com/ or www.FannieMae.com/homeowners
www.FreddieMac.com/avoidforeclosure
