California HARP FAQ

goalCalifornia HARP FAQ-

• Can I refinance my home with HARP if my current loan has mortgage insurance:

o 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.

• Can I refinance if I  originally did Lender Paid MI when my mortgage broker did the loan?

Often there are 3 different outcomes depending on how the original lender set-up the Lender Paid MI. We won’t know which one applies until we contact that MI company to transfer over the cert (or your borrower can call the MI company before submission if you want to know before you send the loan to us). Here are the 3 possible outcomes:

o (Most Likely) Original lender did a one time prepayment of the MI for that loan. If so, your borrower will have no MI on their new HARP loan.

o (Second Most Likely) Original lender is paying monthly on the MI just like a borrower typically does. If so, your borrower will have MI on the new HARP loan equal or slightly less than what the current lender is paying.

o (Rare) Original lender pays annual MI on the existing loan. If so, your borrower would have to pay the annual amount due and then have monthly MI on their new HARP loan

 For more information on HARP loans in the Bay Area please contact me for a free consultation.

I’m Here to Help You With Your California HARP (Underwater) Refinance

I love to work with my Bay Area 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 a Division of Pinnacle Capital Mortgage, I am in a unique position to help you capitalize on historically low interest rates. Contact me below today for a free consultation.

Freddie Mac and Fannie Mae have adopted changes to the Home Loan Affordable Refinance Program (HARP) and you may be eligible to take advantage of these changes. If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:

http://www.freddiemac.com/mymortgage or http://www.fanniemae.com/loanlookup/

 

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