Harp Program - Refinance solutions

There is a little known program available that is designed to help homeowners refinance their conventional mortgages that are underwater on their mortgage vs. the value of their home.  The Home Affordable Refinancing Program, or HARP, allows homeowners whose loans are owned, not serviced, by Fannie or Freddie to refinance to a lower rate and payment without an appraisal and a streamlined process.  In the past quarter the number of these loans closing is up 11% and rising offering hope to struggling homeowners.

So how do you know if your loan is owned by Fannie or Freddie?  Who services your loan (Bank of America, Wells Fargo, Chase, ect) does not determine if your home is Fannie Mea or Freddie Mac owned.  It depends on how your loan was underwritten and if it was originally sold to Fannie or Freddie after you closed, NOT who you send your check to.  I can help you determine if yours is and if your loan qualifies for HARP!  If you think you might benefit from lowering your rate and payment but have thought you can't refinance your home due to your outstanding balance and value, please contact me to see if your home qualifies for HARP.  

Yours in Lending... David

Higher loan limits for FHA spells relief for troubled borrowers owing over $417,000 on thier home.

As reported by Bloomberg.com news.  The House and Senate narrowly approved the higher FHA loan limits giving hope to homeowners that do not qualify for coventional Jumbo products.  Traditional Jumbo products have low Loan To Value, Debt To Income restrictions and can require 680+ credit scores.  For those borrowers with mortgages over $417,000 that want to consolidate debt, lower rates, or combine multiple mortgages, the FHA offers great programs for cash out to 85% LTV and no cash out options to 97.750%! 

http://www.bloomberg.com/news/2011-11-18/u-s-congress-votes-to-raise-top-limit-for-government-insured-mortgages.html

The truth about Mortgage Interest Rates

Shopping around for a low mortgage interest rate?  Here are four simple questions most consumers don’t understand.

1.      What are mortgage interest rates based on?  Mortgage Backed Securities or Mortgage Bonds. (The 10-Year Treasury Note is a close benchmark but unfortunately, is not always a reliable indicator.)

2.      What causes interest rates to fluctuate? There are several factors that cause interest rates to shift periodically. Economic reports and events impact rates on a weekly basis and even a daily basis.  We are tied to a global economy and often political and economic factors outside of the US will move our securities.  Some products are more susceptible then others to fluctuations in rate so good communication with your Loan Officer is important.

3.      What does it mean when the federal government changes the rate? How does this affect mortgage interest rates? When the federal government changes the Federal Funds Rate or the Discount Rate, the change directly impacts credit cards, home equity credit lines, vehicle loans, etc. Mortgage rates typically move in the opposite direction as the rate change, usually the same day as the change. For a more in-depth explanation on how this could affect you, give me a call.

4.      Is it possible to track mortgage bond quotes in real time? The answer is yes. Market conditions are constantly changing, making it crucial to partner with a lender who is always watching for anything that could impact your bottom line.

We are at a historical time when rates have never been lower.  The old rule of lowering your rate over a point is no longer in play and everyone is different.  You need to do the math to see if it's right for you. 

See if a Refinance is right for you!

Quick Guide for Home Buyers

Being a home buyer can be overwhelming at times. Especially if you don’t know the first thing about your mortgage

options or how to get from pre-approval to closing. But in a buyer’s market like this one, now is a great time to be a home buyer. Here are some things to keep in mind:  First things first. Before you start searching for your dream home, you should:

• get pre-approved. Here’s why you should get pre-approved.

- It’s free and you can start the process today.

- You’ll be able to target homes that are in your price range.

- Sellers will take your offer more seriously.

- You’ll be able to close on your home quicker.

• Find a Trustworthy Real Estate Agent

Most likely you’ll be spending a lot of time with your real estate agent throughout the home buying process. So it’s importantto work with someone you trust and who will always keep your best interest in mind. If you need some suggestions, I would be happy to recommend someone who would be a good fit based on your individual needs. Then, you can work together to find the home that’s right for you.

• Get Financing

There are a variety of home financing options available today. From fixed-rate mortgages to variable-rate mortgages, VA and FHA insured loans. I'll work with you to pinpoint the solution that makes the most sense for you.
It’s that easy!

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