As the housing market continues to improve in the Triangle, for those that are looking at refinancing their home, you are in luck! As the title says, it just got easier!
Phase II of the HARP (Home Affordable Refinance Program) is designed to help homeowners refinance even if they have lost value in their property. Approximately 20 million homeowners are eligible if their mortgage is backed by either Fannie Mae or Freddie Mac. To see if your loan is owned by either Fannie Mae or Freddie Mac, visit these links:
What does it mean if your loan is owned by one of these agencies and qualifies for Phase II of HARP?
- Phase II qualification applies to loans originated and purchased by Freddie Mac or Fannie Mae on or before May 31, 2009
- The loan to value (LTV) limits for fixed rate mortgages is eliminated. The ratio ceiling will be raised to 125 percent for fixed rate mortgages with terms up to 30 years guaranteed or owned by Fannie Mae or Freddie Mac
- The requirement for a new appraisal is not needed where there is a reliable automated valuation model (AVM) estimate provided by Fannie Mae or Freddie Mac
- You don’t have to re-qualify for the mortgage unless the new principal plus interest payment increases by more than 20%
- If you don’t have private mortgage insurance now, you will not be required to pay it for the refinance
- Closing Cost can be added to your loan
In any market, it makes sense to refinance your home if it will benefit you. This is positive news for those looking to do just that. Of course, if you need further explanation and assistance see your FM Lending Loan Officer for more information. We’d be glad to answer any questions you may have.