Home Affordable Refinance Program Application Tid Bits
Something that's best to check into before submitting your HARP application is whether Fannie Mae or Freddie Mac bought your mortgage or not. Your mortgage had to have been purchased by May Ninth 2009 and should be currently held or at least guaranteed by either Fannie Mae or Freddie Mac. The HARP program is not for individuals who have just lately obtained a residence. It was built to aid those homeowners who experienced their home equity disappear after the landslide of housing prices.
A great number of diligent individuals have rates of interest within the 5-7% range and can probably save thousands of dollars by refinancing into today's decreased interest rates. The problem until recently has been frequently borrowers have experienced short sales, bankruptcies and additional poor credit which has kept them from being eligible. Appropriately a lot of those credit history restrictions have been lifted introducing the possibility for hundreds of thousands of householders to re-finance their mortgage even though they may be upside down in home equity!
The HARP program is unheard of in that you actually be lent more cash than your house is worth. It almost would seem too amazing to be real but it is. The government is stretching itself to supply this chance to homeowners and we highly recommend that you take advantage of the program if you are eligible to do so and can either cut costs or reduce your mortgage life span.
Home Affordable Refinance Overlay Helpful Hints:
One HARP overlay word of advice you should be aware of is the standard seasoning interval for a home foreclosure and chapter 7 on your credit profile is 3 years or so before you are permitted any government guaranteed mortgage of any sort. Those waiting requirements are removed for the Harp program. The actual point to remember is you have to have pretty good recent payment record on your existing mortgage. You are allowed Just one 30 day overdue payment within the last 12 months and no Thirty day overdue payments within the last Six months. The up-to-date guidelines have eased this restriction because it was previously much more rigid.
An additional HARP underwriting tip you should know of before applying is that your present ltv ratio just can't be lower than 80%. That implies should you owe below eighty percent of the current value of your house you can't utilize the program. The prior ltv threshold for Freddie Mac backed mortgages was one hundred and five percent, and the earlier loan to value limit for Fannie Mae guaranteed home loans was one hundred and twenty five percent. These ltv restrictions have been eliminated completely. If your loan to value ratio is over one hundred and twenty five percent you may have to wait until March before you utilize the program because the government can't assure these loans until the automated underwriting programs are up-to-date using this brand new overlay that is planned for March.
It's well worth noting that if you choose to re-finance in to a Forty year mortgage that the maximum ltv allowed is one hundred and five percent, so if you're attempting to refinance in to a home loan lower than your existing term you need to be conscious that if your house payment rises 20% above your current payment the debt to earnings ratio permitted will be 45% and there has to be minimal credit rating enforced of a 620 score. The forty five percent debt to earnings ratio simply means your monthly debt, in terms of installment loans, minimum charge card payments, insurance, property taxes can't surpass 45% of your overall gross monthly earnings if you are w-2 and your net profit if you're independently employed.
A great number of diligent individuals have rates of interest within the 5-7% range and can probably save thousands of dollars by refinancing into today's decreased interest rates. The problem until recently has been frequently borrowers have experienced short sales, bankruptcies and additional poor credit which has kept them from being eligible. Appropriately a lot of those credit history restrictions have been lifted introducing the possibility for hundreds of thousands of householders to re-finance their mortgage even though they may be upside down in home equity!
The HARP program is unheard of in that you actually be lent more cash than your house is worth. It almost would seem too amazing to be real but it is. The government is stretching itself to supply this chance to homeowners and we highly recommend that you take advantage of the program if you are eligible to do so and can either cut costs or reduce your mortgage life span.
Home Affordable Refinance Overlay Helpful Hints:
One HARP overlay word of advice you should be aware of is the standard seasoning interval for a home foreclosure and chapter 7 on your credit profile is 3 years or so before you are permitted any government guaranteed mortgage of any sort. Those waiting requirements are removed for the Harp program. The actual point to remember is you have to have pretty good recent payment record on your existing mortgage. You are allowed Just one 30 day overdue payment within the last 12 months and no Thirty day overdue payments within the last Six months. The up-to-date guidelines have eased this restriction because it was previously much more rigid.
An additional HARP underwriting tip you should know of before applying is that your present ltv ratio just can't be lower than 80%. That implies should you owe below eighty percent of the current value of your house you can't utilize the program. The prior ltv threshold for Freddie Mac backed mortgages was one hundred and five percent, and the earlier loan to value limit for Fannie Mae guaranteed home loans was one hundred and twenty five percent. These ltv restrictions have been eliminated completely. If your loan to value ratio is over one hundred and twenty five percent you may have to wait until March before you utilize the program because the government can't assure these loans until the automated underwriting programs are up-to-date using this brand new overlay that is planned for March.
It's well worth noting that if you choose to re-finance in to a Forty year mortgage that the maximum ltv allowed is one hundred and five percent, so if you're attempting to refinance in to a home loan lower than your existing term you need to be conscious that if your house payment rises 20% above your current payment the debt to earnings ratio permitted will be 45% and there has to be minimal credit rating enforced of a 620 score. The forty five percent debt to earnings ratio simply means your monthly debt, in terms of installment loans, minimum charge card payments, insurance, property taxes can't surpass 45% of your overall gross monthly earnings if you are w-2 and your net profit if you're independently employed.