Refinance even if you lost market value

 Home Loan Refinance, mortgage, Mortgage Everett, Refinance Everett, Refinance Seattle, Seattle Mortgage Companies  No Responses »
Feb 042012
 

HARP 2 actually works and promises to help thousands of home owners. Wonder of wonders the government has made a program that will actually help underwater home owners who have lost market value. When was the last time you could say that a government program actually works the way they wanted it to? Don’t be confused by who services your loan, that’s who sends you the bill each month,  it’s who holds your loan that’s important. So look it up, see if Fannie Mae or Freddie Mac owns your loan by using the links below. Did you think you would miss out on these low rates, again? Have you tried to refinance and couldn’t because you didn’t have any equity? Did your second mortgage prevent you from refinancing? Did your mortgage insurance company say no to your refinance? Has your home lost market value? Is your mortgage balance over market value by more than 105%? Has this affected your credit score so now you’re below 620? If you looked into HARP before but were the fees to high? Did the lender add on “loan level price adjustments” so that the closing costs were bloated? So that the new payment wasn’t lower than the original or so close that it didn’t matter. Was the new mortgage balance so high it just didn’t make sense. Were the low rates they offered you not the one offered in the ad? The new HARP 2 program will help thousands of home owner refinance and take advantage historically low rates. The old HARP 1 program didn’t address the many problems of negative equity mortgage insurance, second mortgages and low balled appraisals. But now the new HARP 2 program fixes these and many other problems. Fannie Mae and Freddie Mac have been working with the mortgage insurance companies (MI). The MI companies know that if the borrower is allowed to refinance they will be in a better position to keep making payment. The same strategy works for second mortgage holders. The old HARP program stopped at 105% of market value but HARP 2 doesn’t. But with the real estate values falling so fast that many lost 25-50% of the value of their homes so the 105% limit stopped many from refinancing. Well here are the high points of HARP 2.

  • MI (mortgage insurance) is now transferable. New insurance can be issued by any provider.
  • The is no cap on the loan to value so appraisals will not be needed in most cases. These means market value doesn’t matter.
  • Closing costs or loan fees have been lower and set. No add-ons euphemistically called “loan level price adjustments”.
  • Your loan must be held by Fannie Mae or Freddie Mac and originated before May 2009.
  • You must have made the last 6 payments on time and have no more than 1 late in the last 12 months.
  • The program has been extended to end of 2013.
There are web sites to check to see if your loan is held be Fannie Mae or Freddie Mac. Here they are Fannie Mae. And here is Freddie Mac. You can take advantage of these low rates and you don’t have to use your current lender. I suggest ou contact a responsible mortgage broker because they will save you money and hassle.
One last what should I write about next? Please comment below.
Twitt
 Posted by JAJohnson at 5:46 pm  Tagged with: , , , , ,

Everett Mortgage Now is Time to Refinance Everett

 Homes for Sale Everett, Refinance Everett, Seattle Mortgage Companies  9 Responses »
Jan 162010
 

Interest rates will NEVER get lower than they are now

Bad Economic News But There Some Hope for 2011

If you were ever going to consider refinancing Everett you might consider now the time to do it. Now is the time to buy if you can. Homes for sale Everett will never be cheaper because interest rates will never get lower. By the end of 2010 interest rates are expected to be around 6.25% to 6.5% for a fixed 30 year home loan.

I am not drinking the Obama Kool-Aid. Every time I hear the MSM (main stream media) saying we are coming out of this recession I want to puke. I see 10.1% unemployment. But the real unemployment numbers are closer to 22%. I see a very telling statistic in the unemployment numbers. A way to gauge the level of a recovery is how long workers have been unemployed. 27 weeks unemployment is the measuring point. Well the percentage of workers unemployed longer than 27 weeks is about 40%. That means we are developing a chronic long term unemployment problem. This is the same problem the Europeans have. In fact the Mortgage Bankers Association predicts 10.1% for 2010, 9.4% for 2011 and 8.3% for 2012. But these numbers are very deceiving. They don’t count people who have run out of benefits. They don’t count people who are under employed. They are deliberately misreported by the government to make the numbers look better. Now by European standards this level of unemployment is not bad. By American standards this is unacceptable. If you are considering refinancing Everett it is hard to do if you don’t have a job. When you have homes for sale Everett nobody can buy Everett real estate without a job.

If you are in the business of refinancing Everett the next 2-3 years look very bad. Again according to the Mortgage Bankers Association the dollar volume of homes for sale Everett will improve slightly in 2010. But they predict that the volume of homes that refinance Everett will fall by 65%. That makes 2010 a train wreck for mortgage brokers Seattle or anyone else who originates home loan refinancing.

There is a bit of a silver lining in this dark cloud. The numbers on foreclosures are terrible in California, Nevada, Arizona and Florida. When they are taken away it doesn’t look quite so bad for the rest of us. Now if Mr. Obama begins to see that destroying the economy is not in his best interest maybe we will survive this. So your efforts to refinance Everett may not be in vain.

Jim Johnson and comments are always welcome

Twitt
 Posted by JAJohnson at 5:19 pm
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