As we have written about recently, the HARP refinance program is set to expire at the end of this year (December 31, 2015).
The program is a government backed initiative to allow borrowers who could previously not refinance, due to lack of equity or being upside down in their homes, to now do so. In addition, the program also can help homeowners who have had a recent major credit issue to refinance as well, as a foreclosure or short sale on another property will not prevent you from refinancing through HARP.
If you took out your current loan prior to June 1, 2009 and Fannie Mae and Freddie Mac owns your home loan, there is no restriction on value, in order to refinance. In other words, the current appraised value of your home will not disqualify you from refinancing, regardless of value.
In recent weeks we have covered some basic information about the program and last week we started by answering some common questions about the program. This week, we continue with some more questions and answers.
Question #1: Can I refinance more than one property with the HARP program, if I own multiple homes?
Answer: Yes, you can refinance multiple homes with the HARP program, if you own more than one home. As we covered last week, the HARP program is available for borrowers, regardless of whether they do live in a home or use it as a second home or own it as an investment home. However, it is worth noting that once you refinance once using the HARP program, you cannot refinance the same loan again through the HARP program.
Question #2: What types of loan programs will be available for the refinance of my home through HARP?
Answer: The loan options for the HARP refinance program will be limited to 30 year and 15 year fixed mortgages. With interest rates still low, it doesn’t make much sense than to lock into one of these two programs anyway, as there are not tremendous benefits to be had in the current marketplace in adjustable rate loans. Interest rates are low now and may be for a little bit still, but inevitably they will rise, when that happens, you want to be protected with a fixed rate.
Question #3: What if my loan is not owned by Fannie Mae or Freddie Mac, what options do I have then?
Answer: While it is not common, we have seen instances where a homeowner’s property has not shown up as a Fannie Mae or Freddie Mac owned loan online, but upon calling into your existing loan servicer, the loan has been verified as being owned by one of the two. So, if the loan does not show up as owned by either, a phone call to your existing loan servicer may be a good option to make sure it is owned by Fannie Mae or Freddie Mac.
In addition, if your loan is perhaps an FHA or VA loan, there are also already existing streamline refinance options that may be available to you as well to lower your current interest rate and mortgage payments as well. So it is advisable to speak to a lender about those options as well.
If you do not fall into any of these categories, then there may still me options for you to refinance through private lender programs as well.
As always it makes sense to speak to a lender about current home loan options and it is always advisable to speak with a licensed mortgage lender, such as Strategic Mortgage. In future weeks, we will continue to provide additional updates on the HARP 2.0 program.
For more information on current home loan programs and options for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com
Strategic Mortgage, LLC – AZBK#0909514 - NMLS#158804 - Equal Housing Lender
Vasilios Kamboukos – NMLS#160440
Comments(0)