Do you know a homeowner that fits this scenario?
Their home mortgage is underwater, but their loan is in good standing and they continue to make their payments. They are however, frustrated paying 6-7% interest when they keep hearing about the amazing 4% rates that are available today. Their underwater mortgage keeps them from refinancing, right?
Enter HARP 2.0
The HARP or Home Affordable Refinance Program has been in place since March 2009. The program has largely fell short because the program required homeowners to have an LTV (Loan to Value Ratio) of 125% or less. We all know many homeowners that are underwater far more than 25%. The New HARP 2.0 eliminates the 125% LTV requirement. Removing the LTV will allow many more homeowners to take advantage of the program.
Your loan must be owned by either Freddie Mac or Fannie Mae. You can self check your loan by utilizing these links.
The mortgage has to be in good standing, and homeowners need to have a good payment history for the last 12 months. Here is the important and time sensitive bit of information – the new HARP program will expire at the end of 2013.
I am not a loan originator I sell Real Estate! This is not my area of expertise so you must contact a mortgage professional for details. I simply see an opportunity for underwater homeowners to take advantage of the amazing prevailing interest rates.