The program has been established to accommodate borrowers who would benefit from a refinance but their present home value precludes them from the traditional process due to loan to value restrictions.
If you are underwater on a conforming conventional home mortgage, you may be eligible now to refinance without paying down the principal, without Mortgage Insurance or possibly with No Closing Costs! Or, you may choose to include closing costs in the new loan amount.
HARP - the Home Affordable Refinance Program
- Loan must be backed by Fannie Mae or Freddie Mac
- Mortgage to have closed prior to June 1, 2009
- Not available for FHA, VA or USDA
www.fanniemae.com/loanlookup or www.freddiemac.com/mymortgage
or call Cindy 813-289-2727.
There is No Loan to Value restriction for the HARP 2 program. However there are circumstances that cause lenders to take exception to that open ended concept. This aspect is constantly under review and subject to change. A personal consult with Cindy is advised. If you are refinancing to an “ARM” the Loan to Value is limited to 105%.
An appraisal is not always required with the HARP 2 loan. A lender may use an “Automated Valuation Model” or they may choose to require a physical appraisal.
If your current mortgage did not require mortgage insurance, you will not be required to obtain mortgage insurance for the new HARP 2 loan regardless of current loan to value. If you are currently paying for mortgage insurance (your current mortgage was for more than 80% of value therefore requiring MI), you will continue with the same mortgage insurance with no increase.
It is not necessary or even advised is some cases, to attempt the HARP 2 refinance through the lender currently collecting your payments. Any lender, like Bachman Lear, can assist you with a HARP 2 refinance. The Bachman Lear advantage is our access to many lender resources for this program and their idiosyncrasies relative to your circumstances. The complexities levied upon the mortgage industry in the past five years are daunting. Knowing how and where to place your loan for the absolute best rates and terms is what makes the independent lender Bachman Lear the “hands down” choice today.