The New HARP Refinance Guidelines has been update. This is great news for those homeowners under water. If you have a FannieMae or FreddieMac loan you might be eligible to refinance and take advantage of the lower interest rates. With a lower rate you could take the extra money and pay off that debt and / or build your nest egg. In a recent article I wrote, "Refinancing Can Help Build Your Nest Egg" I have examples of how much you can save by lowering your interest rate just 1%.
Here are a few of the changes for HARP Refinancing:
1. Eliminated or raised the loan-to-value (LTV) cap. No LTV restrictions for fixed-rate mortgages with terms up to 30 years, including those with terms of 15 years.
2. Relaxed representation and warranty stipulations. The lender will not be responsible for any of the representations and warranties associated with the original loan.
3. The lender is not required to make any representation or warranty as to value, marketability, or condition of the subject property unless they obtain a new appraisal.
4. The lender is also relieved of the standard underwriting representations and warranties with respect to the new mortgage loan as long as the data in the case file is complete and program instructions are followed for collecting information on income, employment, assets, and fieldwork.
5. The original mortgage must have been sold to Fannie or Freddie prior to April 1, 2009 to qualify for a HARP refi.
6. The new HARP program has been extended through December 31, 2013.
If you need more information about the HARP Refi program or considering refinancing give me a call 703-330-4423
Looking for information on real estate in Prince William County, Manassas or Manassas Park check out www.PrinceWilliamCountyHomeInfo.com
Whether you are a first time buyer or an experienced investor, you will find useful information about how to choose the "right" property, making an offer, negotiating, financing, mortgage rates, moving, and everything involved in making an informed real estate decision in today´s market.