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Answers (12)
- chinni2107
- Contributions:29
Ohh I see. so that number might have been just used as an example.
Thanks for clarifying.
@mhammer2:
Yes, I heard that the loans which have lender paid mortgage insurance as incase of loans with BOFA are not eligible to be refinanced. Few of my friends are told the same reason. I understood that, BOFA will be willing to refinance existing loans but, you may not refinance through other lender. Not really sure though. Please check with BOFA if yor are with them already.
Thanks for clarifying.
@mhammer2:
Yes, I heard that the loans which have lender paid mortgage insurance as incase of loans with BOFA are not eligible to be refinanced. Few of my friends are told the same reason. I understood that, BOFA will be willing to refinance existing loans but, you may not refinance through other lender. Not really sure though. Please check with BOFA if yor are with them already.
- mhammer2
- Contributions:2
One small thing I just learned or at least what I'm hearing with HARP 2 is if you have mortgage insurance like TAMI from bofa, banks will not consider refinancing you.
can some one verify this? is there anyway around it?
can some one verify this? is there anyway around it?
- Norm D Plume, "America Needs Nixon!"
- Contributions:1670
Journalists, in general being kids that were too lazy in college to study anything real; tend to just throw out figures with no basis.
Without context, I don't know where the $3,000 figure applies. If I took a guess, it may mean with the LLPAs being almost gone then there is some average loan amount and credit score they used to come up with that figure as a savings in closing costs (directly or through rate) in relation to HARP loans prior to 1st December.
Without context, I don't know where the $3,000 figure applies. If I took a guess, it may mean with the LLPAs being almost gone then there is some average loan amount and credit score they used to come up with that figure as a savings in closing costs (directly or through rate) in relation to HARP loans prior to 1st December.
- chinni2107
- Contributions:29
Thanks much Plume.Your reply is informative.
So, what is all about approximately $3000 savings due to HARP2 program? I overheard this number couple of times in media when the discussion about HARP2 started. Can you shed some light on that?
Is it the number that includes savings that would result due to no appraisal and few other costs?
So, what is all about approximately $3000 savings due to HARP2 program? I overheard this number couple of times in media when the discussion about HARP2 started. Can you shed some light on that?
Is it the number that includes savings that would result due to no appraisal and few other costs?
- Norm D Plume, "America Needs Nixon!"
- Contributions:1670
can provide some insight, however I am not a lender or financial expert so please run anything you hear (from me and others) past someone who is.
=======================
Irene, you have my vote as the smartest agent on this site; now if only the other agents would qualify their "loan advice" in this manner before posting.
the new HARP, commonly referred to as HARP 2 already started on 1st December. There is no LTV cap, there is no credit score requirement, there is no DTI cap. One of the qualifyers is that the loan had to be on the books (sold to) with Fannie or Freddie by May 31, 2009. This means the loan probably had to close no later than early May 2009.
LLPAs are almost non-existent. In other words almost no adjustments for score or LTV
It is not limited to people who are over 80 LTV, some people that are under that are taking advantage of it due to the streamline enhancements.
=======================
Irene, you have my vote as the smartest agent on this site; now if only the other agents would qualify their "loan advice" in this manner before posting.
the new HARP, commonly referred to as HARP 2 already started on 1st December. There is no LTV cap, there is no credit score requirement, there is no DTI cap. One of the qualifyers is that the loan had to be on the books (sold to) with Fannie or Freddie by May 31, 2009. This means the loan probably had to close no later than early May 2009.
LLPAs are almost non-existent. In other words almost no adjustments for score or LTV
It is not limited to people who are over 80 LTV, some people that are under that are taking advantage of it due to the streamline enhancements.
- chinni2107
- Contributions:29
Thanks Candace.
- Candace Camacho, "CandaceCamacho"
- Contributions:420
Hello,
I recommend taking a look at HARP Program Eligibility Calculator.
Thanks,
Candace
Zillow Customer Support
I recommend taking a look at HARP Program Eligibility Calculator.
Thanks,
Candace
Zillow Customer Support
- Irene Dorang, "TeamIrene"
- Contributions:20
In regards to your underwriting question, look on the Fannie Mae and Bills.com pages for the explanation of manual underwriting versus desktop underwriting (DU). The automated DU system will not be available until March, until then it's manual and depending on how you qualified for the loan originally, from what I've read it appears that if you go to the original lender there may be a reduced requirement for income and employment verification as long as you meet the other eligibility requirements for a HARP refinance. Again, I'm not a lender, just going by what I've read in the Fannie Mae guidelines - I think that is the section that addresses your question though.
- chinni2107
- Contributions:29
Thanks a lot Irene. I now understood the difference between the old and new program.
I would apreciate if you can explain " loan-to-equity was capped at 125%" in the form of an example with some random numbers? I am really confused by this statement.
From your reply I understood that, the new program went into effect from Dec11. I thought that it is still in the process of decision stage. Please confirm.
I would apreciate if you can explain " loan-to-equity was capped at 125%" in the form of an example with some random numbers? I am really confused by this statement.
From your reply I understood that, the new program went into effect from Dec11. I thought that it is still in the process of decision stage. Please confirm.
- Irene Dorang, "TeamIrene"
- Contributions:20
I just did a lot of research into this so hopefully I can provide some insight, however I am not a lender or financial expert so please run anything you hear (from me and others) past someone who is.
I can't estimate how much you would save, but as far as the changes to HARP, here's my understanding of some of the major differences:
- No limit on negative equity in the home as long as you are refinancing to a fixed-rate loan with a 30-year or less term. This is a huge change from the old version, in which loan-to-equity was capped at 125%.
- You can refinance a second home or investment property - another huge change.
- Reduced restrictions for condos as far as the number of units in the building allowed to be delinquent on dues, etc.
- No minimum credit score as long as the new principal and interest payment does not increase your payment by more than 20% over the old payment. (Credit scores are still evaluated, there just is no minimum under those conditions from what I understand.)
- You still can not combine a first and second home loan into one with a HARP refinance, but you can refinance the first mortgage if you are eligible otherwise.
There are other changes as well, and there are also eligibility requirements, for example, your loan must have been acquired by Fannie Mae or Freddie Mac on or before May 31, 2009 and you must have less than 20 percent equity in your home.
Here's the Fannie Mae FAQ page with the entire scoop.
www.efanniemae.com/sf/mha/mharefi/pdf/refinancefaqs.pdf
Bills.com appears to have a well-updated page on this as well.
http://www.bills.com/harp-mortgage/
The new HARP was just announced in fall of 2011 and revised in December, so a lot of people are not clear on it. Be sure to check with a knowledgeable lender.
I can't estimate how much you would save, but as far as the changes to HARP, here's my understanding of some of the major differences:
- No limit on negative equity in the home as long as you are refinancing to a fixed-rate loan with a 30-year or less term. This is a huge change from the old version, in which loan-to-equity was capped at 125%.
- You can refinance a second home or investment property - another huge change.
- Reduced restrictions for condos as far as the number of units in the building allowed to be delinquent on dues, etc.
- No minimum credit score as long as the new principal and interest payment does not increase your payment by more than 20% over the old payment. (Credit scores are still evaluated, there just is no minimum under those conditions from what I understand.)
- You still can not combine a first and second home loan into one with a HARP refinance, but you can refinance the first mortgage if you are eligible otherwise.
There are other changes as well, and there are also eligibility requirements, for example, your loan must have been acquired by Fannie Mae or Freddie Mac on or before May 31, 2009 and you must have less than 20 percent equity in your home.
Here's the Fannie Mae FAQ page with the entire scoop.
www.efanniemae.com/sf/mha/mharefi/pdf/refinancefaqs.pdf
Bills.com appears to have a well-updated page on this as well.
http://www.bills.com/harp-mortgage/
The new HARP was just announced in fall of 2011 and revised in December, so a lot of people are not clear on it. Be sure to check with a knowledgeable lender.
- chinni2107
- Contributions:29
Thanks John.
My loan is owned by Freddie Mac and I am eligible for HARP. Can you shed some shed on the new proposal that was recently submitted on HARP?
How different are the chages from the already existing HARP program?
From the way I understood, HARP has to do with the underwriting and no other paperwork. Please correct me if I am wrong.
My loan is owned by Freddie Mac and I am eligible for HARP. Can you shed some shed on the new proposal that was recently submitted on HARP?
How different are the chages from the already existing HARP program?
From the way I understood, HARP has to do with the underwriting and no other paperwork. Please correct me if I am wrong.
- John Montgomery, "JBMONTY"
- Contributions:76
That all depends on your current rate and term and what you can get with a new HARP loan. Do you know if your current mortgage is owned by either Fannie Mae or Freddie Mac? If so, as long as it was originated prior to June of 2009, you very well may be eligible for the HARP program. HARP program is designed to help people reduce their rates who currently owe more than 80% of their current home value
To check if your loan is owned by either Fannie or Freddie:
http://www.makinghomeaffordable.gov/get-assistance/loan-look-up/Pages/default.aspx
To check if your loan is owned by either Fannie or Freddie:
http://www.makinghomeaffordable.gov/get-assistance/loan-look-up/Pages/default.aspx
HARP Question?
I am thinking to refinance my mortgage and I am wondering if it a good idea to wait until a decidion is taken on the new HARP proposal which was submitted by the house?
Can someone explain me what changes are proposed to the new HARP program and how can that result in a savings of atleast $3000 per year ? (from the way I understood the proposal)
Your advice will be highly appreciated.
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