Orange County HARP Program & Negative Equity Options
Orange County HARP and other underwater refinance options may be able to keep your home afloat
Are you under water on your home? Check out this great article from Derek Beisner, one of our Orange County preferred lenders, about negative equity refinance options!
HARP 2.0 May be an Option You & Your Family Can Benefit from
These days, the word harp stands for more than just a beautiful musical instrument. In the home loan arena HARP 2.0 stands for the Home Affordable Refinance Program. But what is HARP 2.0 exactly and -most important of all-can you benefit? Read on for details.
HARP 2.0 is an enhanced refinance program that allows Orange County homeowners with qualifying mortgages to be able to take advantage of today’s historic low interest rates, even if their home has decreased in value or is worth less than their mortgage balance. The program was first enacted in May 2009, but was enhanced recently to give more homeowners the opportunity to refinance.
Who Qualifies for HARP?
To qualify for this program, your current mortgage loan must be owned by Fannie Mae or Freddie Mac and Fannie Mae or Freddie Mac must have taken delivery of the loan on or before May 31, 2009. Fannie Mae’s program is called RefiPlus and Freddie Mac’s is called RefiRelief.
You may be making payments to your lender or servicer without realizing that Fannie Mae or Freddie Mac actually own the loan. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:
http://www.freddiemac.com/mymortgage
http://www.fanniemae.com/loanlookup
What Features Does the HARP Program Offer?
One of the exciting features of HARP 2.0 is that there is no longer a limit to how much equity is needed to refinance. What’s more, there are no underwater refinance limits! Previously, borrowers whose loan-to-value limits were greater than 125 percent were ineligible to refinance. Now, borrowers can refinance no matter how far their homes have fallen in value 🙂
In addition, many of the fees associated with the original program have been reduced or eliminated. Also, a full appraisal may not be required-which can save time, money, and perhaps some anxiety.
HARP 2.0 allows for refinancing to a lower interest rate and payment, shortening the term of the loan, moving from an adjustable rate mortgage to a fixed rate mortgage-or some combination thereof.
Occupancy may have changed since the original loan was written, and in some cases the property can even be listed for sale.
Will HARP Cover All My Mortgages?
HARP 2.0 only applies to first mortgages, so if there is a second mortgage or home equity loan in place, it will need to remain in place. Most second lien lenders have been very accommodating in allowing for HARP refinances to occur. If the current loan has private mortgage insurance (PMI) on it, most PMI companies are very flexible and accommodating with transferring coverage from the current loan to the new loan.
For more information please contact Derek Beisner at 949-637-9939, or call The Weeks Team at 877-230-3211
Orange County Real Estate Success 
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