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HARP Eligibility – 2.0 Calculator HARP Eligibility – 2.0 Calculator(38)

HARP Eligibility Calculator

The new HARP 2.0 program seems to be all the rave these days as it is designed to help folks refinance who are deeply “under water”.  Still, for most it is still difficult to decipher whether or not their loan and scenario qualify.  So what determines HARP eligibility?  Here’s a few easy questions to help you figure it out:

HARP Eligibility Question #1 – Is your loan currently owned or guaranteed by Fannie or Freddie?

An easy way to validate this first step of HARP eligibility is to check on each of their websites:  Fannie:  http://www.fanniemae.com/loanlookup/ and Freddie:  https://ww3.freddiemac.com/corporate/  If the answer to this is YES, then you’ve passed the first question of HARP eligibility.

HARP Eligibility Question #2 – Did your existing loan close on or before May 31st of 2009?

If the answer to this question is YES, then you’ve passed the second question of HARP eligibility.  Only loans that were funded AND guaranteed/sold to Fannie or Freddie prior to 5/31/09 are eligible for HARP 2.0.

HARP Eligibility Question #3 – Have you utilized the HARP program already since June 1st of 2009?

If the answer to this question is NO, then you’ve passed the third question of HARP eligibility.  The Government apparently doesn’t want you to have already taken advantage of the HARP program.

HARP Eligibility Question #4 – Have you been current on your mortgage payments for the last six(6) months AND have you had no more than one(1) 30-day late payment within the last twelve(12) months?

If you’ve answered this last two-part question as YES, then you’ve passed question #4.  Borrowers must not have had more than one late payment within the last 12 months and no late payments at all during the last six months to be eligible for HARP 2.0.

HARP Eligibility Question #5 – Is your home’s mortgage within the allowable conforming loan limit for your area? ($417,000 for most areas but check the Fannie Mae website to double check what the max is in your area).

If you answered this as YES and your mortgage amount is within the allowable conforming limit for your area, then you’ve passed question #5.

HARP Eligibility Question #6 – Is your mortgage currently at 80% LTV (loan to value) or higher?

In other words, do you currently have less than 20% equity in your home based on today’s value?  If so, then you’ve passed question #6.

Results:

If you’ve answered all of these question correctly then it appears as if you’ve passed and you MAY be eligible for a HARP 2.0 refiannce.  You may also qualify for the “no appraisal / streamline” version which means even less headaches.  To find out if you qualify for sure and what the rates/terms would be, contact a certified mortgage banker today:

Author Joe Karns is a seasoned mortgage banker and master of getting you the HARP 2.0 Eligibility, is dedicated to bringing his subscribers relevant and useful information. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation.  Or, click here for a free quote and to determine your HARP Eligibility.

 

Best HARP 2.0 Rates Best HARP 2.0 Rates(3)

Best HARP 2.0 Rates

One of the top questions from homeowner’s these days seems to be, “What lender can get me the best HARP 2.0 rates on my refinance?”, but this question should actually be second to the most important factor:  “What lender can even do my HARP refinance?”.  Unlike most standardized mortgage programs we’ve all come to know, there are many factors that will determine which lenders can complete your transaction.  There are also different “pricing hits” for various aspects of your scenario which are important to know before you start your search for the best HARP 2.0 rates.  In this piece we’ll be focusing on how to best educate yourself on the potential  pricing hits:

Best HARP 2.0 Rates – Loan Level Hits to Watch for:

Though we’d all like to get our hands on the best HARP 2.0 rates, its important to know what the various “big banks” who will ultimately service these loans view as additional risk factors.  The most common loan-level price adjuster is LTV(Loan-to-Value).   There are also loan level hits for credit score, property type, and occupancy type (owner-occupied, investment property, etc.).  Lets first focus on the most common:  LTV pricing hit:

Best HARP 2.0 Rates – Price add-on’s for LTV:

Now while this new version of HARP is not supposed to limit the LTV, there are only a select few banks willing to accept any loans over 125% LTV.  In regard to pricing hits specifically, the best HARP 2.0 rates can be obtained with the lowest LTV.  For example if your home is at 80%-85% LTV, there shouldn’t be much of a pricing hit at all.  However, once you exceed the higher LTV thresholds such as 90%, 95%, 105%, and especially the 125% LTV, now you should expect to pay about .25% higher in rate, depending on the lender.  A good rule of thumb when looking for the best Harp 2.0 rates is to first ask the lender if they have the ability to complete your transaction based on your expected LTV, and second, what the pricing hit will be for your expected LTV.

During your search for the best HARP 2.0 rates, the first question should be, “can this lend actually do this deal given my property’s current LTV?” 

Best HARP 2.0 Rats – Pricing Hits Fee Structure for Credit Score and Property Type:

Other aspects to consider when searching for the best HARP 2.0 rates is credit score and property type.  As you would probably expect, with less than perfect credit comes a bit higher rate.  There are usually very little hits if you’re at 680+ but typically there will be a small hit once you get below 660.  Additionally, there is a hit for property type.  Specifically, condominiums usually come with about .125% hit to rate (75bps to price) if the LTV is over 75%.  This is an industry-wide Fannie Mae hit so plan on getting this bit higher rate if you own a condo and are over 75% LTV.

As you can see, there isn’t a one-size-fits-all rate/price for this program and its important to take all aspects into consideration when in search of the best HARP 2.0 rates.

Author Joe Karns is sales and marketing leader and master of getting you the best HARP 2.0 rates, is dedicated to bringing his subscribers relevant and useful information. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation and expert advice on finding the Best Refinance Lenders.  Or, click here for a free quote on Best HARP 2.0 Rates.

Compare Mortgage Rates Compare Mortgage Rates(32)

Compare Mortgage Rates the smart way and come out on top.

Whether you are a consumer looking to purchase a home or a seasoned homeowner looking to refinance, there are a number of key factors to consider when you compare mortgage rates.

Compare Mortgage Rates Tip#1: Consider the Source

When you compare mortgage rates, you must first consider the integrity of the lender.  Its best to compare mortgage rates of local banks, mortgage bankers, and also brokers.  Typically brokers will have the absolute lowest bare bones rates, but they are also have the least control over the fulfillment of your transaction since they are required to outsource the underwriting and sometimes also the processing.  On the other side of the spectrum, local banks as well as the “big banks” may have the most well-known brand name, however when you actually compare interest rates between them and the mortgage bankers, the actual banks usually have higher rates since all of their massive advertising costs big money which they pass on to you the consumer.  At the end of the day, the reputable mortgage bankers are usually the best mix of low rates, control over the entire process, and overall integrity.

Compare Mortgage Rates – Tip#2: Consider the costs

When you compare mortgage rates among various lenders, be sure to consider what the total cost of the transaction is, regardless of whether the fees are required to be paid out of pocket or whether they are being rolled into the new loan. Ideally, you’ll be able to negotiate the lender to pay some or all of the closing costs while also providing a competitive interest rate. Always consider the “APR” as well as the actual note rate to get the complete picture of costs associated with the transaction.

When you compare mortgage rates, many would argue the most important factor is the experience and integrity of the loan officer.

Compare Mortgage Rates – Tip#3: Consider the Loan Officer

There is much more to a great rate than the pricing and rate itself.  Due to today’s turbulent and uncertain mortgage market, there are a multitude of things that could go wrong and/or cause your mortgage process to go sideways.  To position yourself for the best chance of an efficient mortgage process, only compare mortgage rates among reputable loan officers and lenders.  That may seem obvious but its very easy to get sucked into an online ad flashing an ultra low interest rate.  Whether that rate is legitimate or not, its important to consider the integrity of the source.  The absolute lowest interest rates are usually advertised by bare bones broker shops or “refi houses” that don’t even employ actual loan officers, but instead have telemarketers and processors doing most of the handling of the loans.  Those types of lenders may actually have the lowest rate but usually offer the highest fall-out rate when it comes to missing crucial aspects of the scenario that any experienced loan officer would catch early on and usually get resolved before it becomes an issue.  In short, always consider the experience of the loan officer when you compare interest rates.

Author Joe Karns is sales and marketing leader dedicated to bringing his subscribers relevant and useful information. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation and expert advice on finding the Best Refinance Lenders:  Compare Mortgage Rates

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