Underwater California Home Owner’s Refinance with HARP 2.0

Underwater California Home Owner’s Refinance with HARP 2.0

Hi Brian, can I refinance my Bay Area home under the HARP program if I had mortgage insurance on my loan?

The Answer; YES. This recent question I received that I think you will find the answer very helpful! The Underwater California home owner is poised to refinance into current market mortgage rates under the Home Affordable Refinance Program 2 (HARP 2)

HARP 2 will be bringing California home owners some much needed help. HARP has revised the two biggest guidelines that were a hurdle for us in the Bay Area. The two changes to the HARP 2 program include an unlimited Loan to Value and the ability to refinance even if you have Private Mortgage Insurance (PMI), which opens up opportunities for seriously upside home owners who have kept up with their current mortgage obligations and have not been late on a payment in the past six months.

The biggest refinance obstacle that stood in the way of underwater home owners during the original HARP included the inability to refinance if your loan carried Private Mortgage Insurance. Guidelines in the HARP 2 program require Private Mortgage Insurance Companies to waive their rights to force lenders to purchase back badly underwritten loans in order to participate in the HARP 2 program

If you do have PMI and plan to refinance under the HARP 2 program, consider your financial goals and objectives you want to meet over the next 5 to 10 years. Refinancing under the HARP 2 on a 30 year fixed program is the best way to lower your overall monthly mortgage payments but will cost you more in interest over the life of the loan when compared to a 20 year or 15 year fixed rate mortgage offered by HARP as well. Additionally, on a shorter term loan your mortgage balance will decrease faster which will also allow for the cancellation of PMI sooner resulting in even more in monthly savings.

Additional basic requirements for the Home Affordable Refinance Program 2 include that the home is a Fannie Mae or Freddie Mac owned mortgage on or before May 31st, 2009, a 80 percent or greater Loan to Value in which the home owner has not missed a payment in the previous 6 month and only 1 late in the past 12 months. You also must not have refinanced under the original HARP program unless Fannie Mae owned the refinance HARP loan originated between March to May 2009.

I’m Here to Help You With Your Underwater Home Refinance HARP 2.0

I love to work with readers that find my information on the Mortgage and Housing Market helpful in your decision making process. As a Mortgage Planner at Vintage Mortgage Group in Pleasanton I am in a unique position to help you capitalize on historically low interest rates in 2012. Contact me below today to help you with your purchase or refinance.


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