Archive for the 'economy' category
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.