Your Mortgage Source – Help! I owe more on my mortgage than my house is worth. Is there a mortgage for me?

JoAnn Rooney

HARP is the Homeowner Affordability Refinance Program being offered for those homeowners who do not otherwise qualify to refinance their current home loan.

If your current loan is owned by either Fannie Mae or Freddie Mac you may be eligible to refinance your home with HARP funds, take advantage of the new low interest rates, and reduce your monthly payment. We have several lenders offering this program NOW.

How do I find out if I have a Fannie or Freddie mortgage?

Visit the webpages below and complete the short form online.
www.fanniemae.com/loanlookup
www.freddiemac.com/corporate
You will know immediately if Fannie or Freddie owns your loan. Only your first mortgage can be refinanced (if you have a first and second mortgage, the second mortgage remains as is). We can finance up to 105% of the current value of your home. In some cases HARP loans are available up to 125%.

How do I know if I am eligible?

1. You owe more than the house is worth OR you have lost significant equity.
2. You have a fixed mortgage rate higher than current interest rates.
3. You have an adjustable rate mortgage (ARM) that has reset or will soon reset.
4. You are current on your mortgage and have not been 30 days late making a payment in the last 12 months.

Can I get cash out to pay other debts?

No. Unfortunately, the Home Affordable Refinance Program (HARP) will not allow cash back to the borrower in excess of $250. The goal of this loan is to reduce your current monthly payments.

What about closing costs and mortgage insurance?

All closing costs can be included the mortgage, so except for a credit report fee and appraisal fee (if required), HARP loans do not require cash at closing. The credit report and appraisal fees typically run $300 or less. This expenditure will be offset by your reduced mortgage payments savings in a matter of a few months.

Typically you would be required to pay mortgage insurance, making the refinance transaction not worth paying the closing costs. Mortgage Insurance is not required for HARP loans.

Here is an example of a HARP refinance that I did for clients Jack and Kate:

Jack and Kate have steady jobs. They pay their bills on time including their monthly mortgage payment. Like many homeowners in Florida, Jack and Kate felt they were unable to refinance to a lower interest rate because the value of their home has declined. They met the following requirements; They own a one-to-four unit home with a $310K balance on their first mortgage and an appraised value of $300K. Their Adjustable Rate Mortgage currently at 6.25% was owned by Fannie Mae and was scheduled to reset in June 2011. They are up-to-date on their mortgage payments and have not been more than 30 days late in the past 12 months.

With my assistance, Jack and Kate were able to secure a 4.50%* 30-year fixed rate loan through the HARP program. Their payment went down by $368 a month, greatly reducing their stress over other bills each month and freeing up funds for other cash needs. Their credit score will not be affected and they now have peace of mind knowing their payment is fixed and they can remain in their home indefinitely. *4.769% APR

Loan to Value Ratio (LTV) can be used to estimate the amount of equity you have in a property. Example: $300,000 (loan balance) divided by $286,000 (market value) = 105% LTV

The HARP program is not just for folks “upside down” on their mortgages. If your LTV is anywhere from 80% to 125%, you may be eligible.

Call me to see if you qualify for a refinance under the HARP program! 727-787-2299. ext 1

Call JoAnn Rooney today 727-787-2299 X 1
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