HARP 2.0 Refinance Program saves underwater homeowners an average of $200 a month on their mortgage payments.
Kansas, City, MO (PRWEB) August 06, 2012
Missouri HARP 2.0 mortgage lenders have completed 4,916 (4.1%) HARP 2.0 refinances YTD of the state’s estimated 122,000 Fannie Mae or Freddie Mac underwater mortgages, according to the Federal Housing Finance Agency’s (FHFA) most recent 2012 Refinance Report.
Due to historically low mortgage rates, combined with more flexible eligibility requirements for President Obama’s Home Affordable Refinance Program, homeowners are saving an average of $200 a month.
According to Corelogic, of the 583,000 GSE loans owned by Fannie Mae or Freddie Mac, 122,000 are underwater. This number equates to almost $5 Billion in negative equity mortgage balances.
HARP loans accounted for 13% of all GSE refinances completed year-to-date in the state of Missouri, with momentum growing for this program every day as more underwater homeowners become aware of the expanded guidelines.
“I have heard many people refer to HARP as a stimulus program,” states Susan Waugh, broker of Hometown Mortgage in Missouri. “It isn’t uncommon for homeowners to save upwards of $300 to $400 a month with a new refinance, especially since rates have been so low lately.”
Susan Waugh lists appraisal waivers, mortgage insurance barriers and unlimited loan-to-value caps among the top roadblocks that were removed with the new changes to HARP, which went into effect for all participating brokers and bankers in early 2012.
Help for MO homeowners is definitely needed for many that purchased at the peak of the housing boom. According to a Harvard University Joint Center for Housing Studies report ”The State of the Nation’s Housing,” the level of house payment to household income was over 53% higher for loans originated in 2006 as compared to 2011.
About The Home Affordable Refinance Program
In October 2011, the Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac announced enhancements to the Home Affordable Refinance Program that make it easier for lenders to refinance HARP-eligible mortgages.
The Home Affordable Refinance Program (HARP) is a streamline refinance program created to help responsible borrowers who have continued to make their mortgage payments, but may be unable to refinance over recent years due to a decline in their home value.
The Obama administration claims that HARP will save homeowners an average of $200 a month in mortgage payments, and that the Home Affordable Refinance Program overall will help an anticipated 4-5 million underwater homeowners.
To be eligible for HARP 2.0, borrowers need to meet the following requirements:
1) Their first mortgage loan is owned or guaranteed by Fannie Mae or Freddie Mac.
2) The loan was sold to Fannie Mae or Freddie Mac before May 31, 2009.
3) They have to be current on their mortgage payments.
4) Must owe more than your home is worth, or is there minimal equity in your home.
5) All mortgage payments made on time in the last 6 months.
6) No sixty (60) day late payments in the past 12 months.
Contact Susan Waugh at 314-669-6964 or visit her HARP website at http://missouri.harpmortgagelender.com/ for more information about qualifying for the Home Affordable Refinance Program.