Playing the H.A.R.P.

If you have watched the news over the last week, you have likely caught a glimpse of President Obama speaking about a new plan to save underwater homeowners that have mortgages owned by Fannie Mae or Freddie Mac.  Too good to be true?  Maybe.  What is not too good to be true is the opportunity to have a Gradient Home Mortgage Professional perform a complimentary Second Opinion for you to determine what kind of solutions are available; including whether or not you qualify for a H.A.R.P. (Home Affordable Refinance Program) loan.

There is not a magic wand that will magically wipe away the effects of the housing crisis.  There are, however, viable refinancing solutions available to a great number of Americans that are being left on the table.  We have yet to see how the new H.A.R.P. guidelines will affect our industry . . . we can only hope that the program will be better executed the second time around.  H.A.R.P. is not our only saving grace; we have many other refinance programs that can help.

There are several changes proposed under the new H.A.R.P. initiative.  Some of the prominent changes are:

·         Removing the 125% loan to value (LTV) ceiling for fixed rate mortgages – that means no LTV restrictions . . . in theory a homeowner could owe $250,000 on a home worth $150,000 and if they qualified otherwise, they could refinance into a current market rate.

·         Eliminating the need for an appraisal when there is a reliable Automated Valuation Model estimate provided by Fannie Mae or Freddie Mac.

·         Extending the program through 12/31/2013.

·         Removal of risk based fees – what this means to homeowner’s is lower interest rates under the program.  Currently there are risk based fees added into the interest rate making the average H.A.R.P. rate about .25% higher than a market rate.

Whether you are eligible to “play the “H.A.R.P.”” or just look to a traditional refinance option; it is imperative that you are taking advantage of the services available to you through Gradient Home Mortgage.  Our Second Opinion Reports are done by professionals that take all strategies into consideration when creating a report.  Your home is likely one of your largest investments; let us help you ensure it is treated that way.