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HARP 2.0 HITS THE STREETS

Fannie Mae and Freddie Mac both released the new HARP 2.0 programs this week. This loan program was designed to answer the question from all the home owners who paid their mortgage on time and were underwater and have been saying; “What about me”?

For three years now all we’ve heard about has been help for distressed home owners.  But there are many, many of us out here who, through no fault of our own, have been paying our mortgage on time but cannot get our loans refinanced. Anyone who purchased a home prior to 2008 most likely has an interest rate between 5.50% and 7.00%. With current rates in the low 4.00% range it’s maddening to think that only first time home buyers or people who made large down payments before can get a low mortgage rate now. HARP 2.0 should and will help.

Anyone with a loan balance below $417,000 has a very good possibility of having their loan held by Fannie Mae or Freddie Mac.  This is the first step to take. Find out for sure (self-help is available on their web sites or call me. I can look it up for you). Generally, there is no Loan to Value consideration.  Rates today on this program are in the 4.50% – 4.75% range.

Now, there are some pitfalls. Not every loan is owned by Fannie or Freddie. You may or may not have to pay for an appraisal. There is no way of knowing until your loan application is run through the underwriting engine. Also, you will not get the current loan market rates. Expect to pay about a ½% higher rate on the HARP refinance (this part is dependent on credit score and Loan to Value).

All in all we are very hopeful this can help more home owners refinance their mortgages to lower rates and lower payments. This will help all of us.

Let us help you and your clients. Call us any time. (480) 359-5682.  If you don’t reach us right away we will get back to you within a few hours the same day or the next morning. Every time.

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About danielduckworthmortgagenotes

Senior Mortgage Loan Officer at Academy Mortgage Group in Scottsdale, AZ

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