There are major changes headed our way from Washington, one of them will dramatically benefit homeowners that are underwater with their home and in previous months could not benefit from a refinance.
The proposed changes are listed for you below.
Major Changes include:
- No underwater limits:Â Borrowers will now be able toÂ refinanceÂ regardless of how far their homes have fallen in value. Previous loan-to-value limits were set at 125 percent.
- Eliminating appraisals and underwriting:Â Most homeowners will not have to get an appraisal or have their loan underwritten, making their refinance process smoother and faster.
- Modified fees:Â Certain risk-based fees for borrowers who refi into shorter-term loans will either be eliminated or modified.
- Extended deadline:Â The end date to get a HARP refinance has been extended to Dec. 31, 2013
- Nov. 15, 2011:Â Fannie Mae and Freddie Mac will start sending operational instructions to lenders.
- Dec. 1, 2011:Â Some lenders will begin to take mortgage applications, but it could take additional time for all lenders to incorporate the modified program into their systems.
- Q1 2012:Â Homeowners with a loan-to-value balance of greater than 125 percent should start to be able to refinance.
- The existing mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. Homeowners can determine if they have a Fannie Mae or Freddie Mac loan by going to:Â http://www.FannieMae.com/loanlookup/Â or calling 800-7FANNIE (8 a.m. to 8 p.m. ET)Â https://ww3.FreddieMac.com/corporate/or 800-FREDDIE (8 a.m. to 8 p.m. ET)
- The program will continue to be available for loans with LTVs above 80 percent.
- Borrowers must be current on their mortgage payments with no late payment in the past six months and no more than one late payment in the past 12 months.
If you have any questions please feel free to contact me anytime.