How do you take advantage of today's low interest rates if your property has fallen in value? Steve Dunnett introduces the new HARP program.
You may have heard about the different programs available to help with refinancing and thought that it was not for you. Up until now, you were probably right. The newest version of the HARP (Home Affordable Refinance Program) may change that. The first version of HARP allowed borrowers to refinance if their loan to value ratio was at 125%... at least on paper. But many factors led to super high interest rates or lenders not even participating in the program...it was ineffective.
The new version of HARP keeps the risk of the loan with the original loan, so new lenders are more enticed to participate. Also, we may not even have to do an appraisal at all because the limit for loan to value is no longer an issue for the refinance. The idea is that no matter what someone owes, if they have been paying their loan on time they will be less likely to walk away from their house if the payment is even lower. Less homes going into foreclosure is better for the real estate market and lenders.
The updated HARP goes into affect March 17th. Things will be very busy after that because of the backlog of people that could not refinance under the previous program.. I’ve been preparing to work with many people who will qualify for the new HARP. If you think you might be able to benefit from the new HARP, please give me a call or shoot me an email. I’d be happy to go over the program with you and answer any questions you might have. Of course, if you’d like to check out the program as it is now, you can access information about it on the governments HARP program website here: http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx
Let me know if there’s anything more you’d like to know!
Stephen Dunnett, Loan Officer
NMLS ID: 755940