Has Your Home Lost Value?.....You’ve Still Got Refinancing Options!

It’s been a tough few years for Homeowners.  If you are one of the millions of Americans whose home has depreciated, know there’s still hope and still options out there.  Homeowners with limited equity have until June 2011 to act on a government supported program allowing for refinancing to lower market rates even with significant loss in equity.  The Home Affordable Refinance Program (HARP) was introduced by the Obama Administration to enable borrowers who have maintained excellent credit to refinance at today’s lower market rates.  This is the refinance portion of the Home Affordable Program and not the “modification” portion, which was designed for borrowers who are on the verge of foreclosure.

The HARP program allows government sponsored mortgage entities, FannieMae and FreddieMac, to buy back conforming mortgages they already own without regard to loss in equity otherwise effecting the requirement to carry mortgage insurance (PMI).  The big advantage to homeowners who don’t have PMI today is that the loss in equity in their home will not require them to introduce mortgage insurance when attempting to refinance. 

For example: you purchased your home in 2007 or 2008 with a 20% down payment to avoid PMI, and your home’s value has subsequently dropped to the point where you no longer have 20% equity or possibly even owe more than your home is worth in today’s marketplace. You can still look at refinancing to today’s lower rates without introducing PMI on the new loan. However, you must act quickly, the program is scheduled to end in June 2011 so time is of the essence.

Important Guidelines for HARP:

• Your current mortgage must be owned by FannieMae or FreddieMac

Note: FannieMae and FreddieMac are not services and they may own your mortgage even though you make monthly payments to Chase, Bank of America, Wells Fargo, or other loan servicers.  So don’t automatically count yourself out if you make your payments to a bank!

• Your current mortgage cannot currently have mortgage insurance in any form.   

      This includes monthly PMI, lender paid mortgage insurance (LPMI) where the PMI is built into       your interest rate, or upfront mortgage insurance (UFPMI) where a lump sum insurance premium was paid at time of closing.

• If your current mortgage has PMI of any kind, the only option with the HARP program is through your current servicer.  

Note: Some servicers do not offer the HARP program options for their existing mortgage clients.

•  Available for loan-to-values (LTV)s up to 125%

Again, the deadline is June 2011. Call a Vertex Loan Advisor today to discuss your options and take advantage of our lower rates with HARP qualification! 1-877-939-0339