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So, Obama made changes to his Home Affordable Refinance Program… What does that mean for you?

Many homeowners are considered to be under water on their home, meaning they owe more on their home then what it is worth. Through the new adjustments made to Obama’s HARP plan, homeowners can refinance their mortgage even if the mortgage amount is over to 125% of the current home value cap set by previous plans. This is great news for homeowners that owe more than their home is worth. A typical refinance may require a homeowner to owe 80% of their current home value or have an 80% loan to value (LTV) ratio. In today’s economy owing less than 80% of your properties value is rare so this new adjustment opens the HARP program to a larger group of homeowners. Additionally, with the new provisions the refinance process will be streamlined for homeowners avoiding the need for an appraisal.

Through the program, only loans that are owned by Fannie Mae and Freddie Mac are eligible. You can look up online to see if you loan is owned by Fannie Mae or Freddie Mac. The loan must have been originated prior to May 31st, 2009.

Additional stipulations include: Homeowners must be current on their mortgage payments and cannot have missed more than one payment in the last year or have been late on a payment in the last six months. The program helps to reduce fees for homeowners that are looking to refinance, adding additional incentives to make the change. With mortgage interest rates at a record low, the adjustments made to this plan can open up the possibility of refinancing to homeowners who were not able to refinance on the original plan. For questions regarding the new HARP plan call a Red Door Real Estate agent at (617) 553-1880. We would be happy to provide you with information regarding the potential value of your home in today’s market.  
Posted at 10/28/2011 06:29 PM by Madelene Cheney
Categories: HARP, economy, Real Estate Market, refinancing