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Meck77
03-07-2011, 09:22 AM
So some of you may have heard about these government loan modification programs. Most of those required you to be late on your mortgage and financially unable to pay down your loan. Unknown to me and other realtors I know hidden within the Marking Homes Affordable program is a refinance program to help home owners who are NOT LATE and still have the ability to pay!

http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx

This even applies to investors who own single family homes as rentals.

In a nut shell it has to be a freddie or fannie loan. You can find out if your home applies by clicking on the link. Just put in your address to find out. If so from what I'm hearing from clients I've referred there it's a quick 5 minute application/pre approval. One of my clients just secured a 5 7/8 interest rate on his RENTAL house. YES rental house.


Rates have gone up but there are still good if you haven't been able to refinance yet. Inflation is on the rise and it's my opinion that at some point the Fed is going to have to raise rates again. This program expires in June 2011.

I actually talked to Bank of America about why more people haven't heard about this. Their response. They are simply so buried in foreclosure work, short handed, that they have not even advertised this very much.

Bottom line. THERE IS HELP for those of you who have tried to do the right thing but might not have been able to qualify for a refinance before.

If you call make sure you ask for the Making Homes affordable REFINANCE program if the above scenario pertains to you. Otherwise you are looking for the loan modification program.

If anyone has any success stories or horror stories and are willing to share them please do so.

To see if your loan qualifies follow this link. It just takes a second and all you have to do is plug in your address. http://www.makinghomeaffordable.gov/get-assistance/loan-look-up/Pages/default.aspx



Eligibility*
You may be eligible to apply if you meet all of the following:

You have a mortgage owned or guaranteed by Fannie Mae or Freddie Mac.
You do not have an FHA, VA or USDA loan.
You are current on your mortgage payments and have not been more than 30 days late making a payment over the last year.
You owe more than the home is worth, but your mortgage does not exceed 125 percent of the current market value of your home.
The refinance will improve the long-term affordability or stability of your mortgage.
You have the ability to make the new payments.
*Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you qualify for HARP.

Beantown Bronco
03-07-2011, 09:42 AM
I did this last year through Bank of America. They don't have the FHA requirement, but all the other criteria looks the same. It was completely unsolicited by me, too, which was the great part. They literally called me out of the blue and offered it to me one day. I was never late on any payments and always paid a little extra against my principal.

I was only 3 years into a fixed 30 year loan and managed to lower my percentage enough to keep my payments the same and knocked it down to a 20 year. Can't go wrong with that. Now I'll have my house paid off at least 7 years early essentially for free.

Gutless Drunk
03-07-2011, 09:55 AM
I am a Mortgage Broker and have been utilizing these extensively.
If your loan is owned by Fannie Mae, oftentimes they do not even require an appraisal.

BigPlayShay
03-07-2011, 10:16 AM
My wife and I did this. Pleased with the results. Processed pretty quickly as well. Had to dig a little bit to find this type of deal, although, this was about 4-5 months ago. I have heard more about them since then.

crush17
03-07-2011, 10:33 AM
I just started work at bank of america helping people with these programs.

I will keep an eye on this thread and try to answer any questions you all may have.

One thing right off the bat: MHA may be going away very, very soon.

TonyR
03-07-2011, 10:58 AM
Sorry for the possible thread derail here but if you mortgage guys have any experience with, or opinions or comments on, a company called NVR Mortgage please PM me. Looking at a Ryan Home and they give some good incentives for using NVR which with they're affiliated. Thanks.

enjolras
03-07-2011, 11:24 AM
Does it have to be a primary residence? I have a house in Dallas (well Plano) that is a bit underwater that we are dutifully making payments on...

Meck77
03-07-2011, 11:32 AM
Does it have to be a primary residence? I have a house in Dallas (well Plano) that is a bit underwater that we are dutifully making payments on...

No! This program is to help people who have been paying their bills on time! Imagine that!

Tony: No worries. Let's just consider this a general mortgage thread. With as many people as we have here I'm sure many people will have the same questions or other questions that we can help one another with.

rugbythug
03-07-2011, 11:38 AM
You have to be upside down to make this work? I have 5 rental homes fannie mae freddie mac that I would like to get done

Meck77
03-07-2011, 12:11 PM
You have to be upside down to make this work? I have 5 rental homes fannie mae freddie mac that I would like to get done

Nope. I'm telling you Thug. I was just as shocked to hear about this as you probably are.

As mentioned earlier BofA isn't even requiring an appraisal. Other banks could be different. You'll have to call each bank that services your loan.

baja
03-07-2011, 12:14 PM
www.patrick.net

This is a great web site about housing news in the USA you can get a daily email with the links of the best stories of the day.

Gutless Drunk
03-07-2011, 12:36 PM
Nope. I'm telling you Thug. I was just as shocked to hear about this as you probably are.

As mentioned earlier BofA isn't even requiring an appraisal. Other banks could be different. You'll have to call each bank that services your loan.

You don't have to go back to your servicer for this product. You can shop it just like any other refinance. If you go to a Mortgage Broker they can use different lenders to get you the best rate. It is called "DU Refi Plus" for Fannie Mae loans and "Freddie Open Access" for Freddie Mac.

It is available for Non Owner Occupied Properties. However only on the "DU Refi Plus" can the occupancy have changed. Fannie must have acquired your loan prior to 03/01/2009 and Freddie prior to 05/31/2009 for the loan to be eligible.

If you didn't have mortgage insurance on your prior loan you can go up to 105 to 125% LTV without requiring Mortgage Insurance. (if an appraisal is even required) If you did have mortgage insurance, unfortunately, you are kinda screwed. It wasn't designed that way, but that is how it worked out.

These parameters are what I offer as a wholesale broker, there might be slight differences with current servicer's, etc.

Oh...and rates are down nicely today. Unfortunately, since the OM does not have an announcement section I will not quote them :~ohyah!:

Garcia Bronco
03-07-2011, 12:48 PM
Can't get help on a refi, which is bull****.

You people that did owe me a thank you for carrying your ass. :P

CSU Husker
03-08-2011, 06:33 PM
Thanks for starting this thread. I called today and can get my main mortgage refi'ed to 5.5% for 30 years fixed. Now I gotta decide if I want to get out of my 3.5% adjustable for that. Thinking that I will, even tho the payment will go up I think the stability is worth it.

DenverBroncosJM
03-09-2011, 08:17 AM
I have a rental in frisco, problem is it's not a Fannie or Freddie. I have to pay 200 a month out of pocket. Oh well I have a long term renter at least so that helps!

WolfpackGuy
03-09-2011, 12:44 PM
Can't get help on a refi, which is bull****.

You people that did owe me a thank you for carrying your ass. :P

Right on.

B of A must feel "guilty" about that "settlement" (aka backdoor bailout) they pulled over on Freddie's Fannie a couple months ago.

This country is ****ed!

Gutless Drunk
03-12-2011, 07:04 AM
FYI..these programs were extended yesterday for another year. They were set to expire June 30, 2011 and have been extended until June 30,2012.

TonyR
03-14-2011, 07:24 AM
So how much do y'all see rates moving (I assume up) over the next few months?

Meck77
04-02-2011, 11:45 PM
Update...........

Edited by CRISTINA LOUROSA-RICARDO

Nearly one out of four homeowners is underwater on a mortgage, meaning he or she owes more than the house is worth. In response, banks and the federal government are rolling out programs they say will help -- for homeowners who qualify.

GMAC Mortgage and Wells Fargo have started either reducing some mortgage balances, deferring payments or offering subsidized refinancing. J.P. Morgan Chase says it will open another 30 dedicated "help centers" this year where homeowners can apply for loan modifications.
[SJ-STAT0403]

Last month, the government also stepped in, extending the period for underwater borrowers to refinance their mortgages at lower rates, which wasn't possible through standard refinance programs.

To qualify, in most cases, borrowers have to prove they're having trouble making their payments and for a good reason. They'll often have to provide documentation for a job loss, a pay cut, large medical expenses or other unanticipated losses.

If approved, they could be offered a lower interest rate -- to as low as 2% when a bank is participating in the government's Home Affordable Modification Program. Or they may receive a longer repayment period, which makes monthly payments smaller, says Paul Leonard, a director at the Center for Responsible Lending.

With some lenders, borrowers who are past due and whose home values have suffered large losses could qualify for a principal deferment, where a chunk of the mortgage is set aside to be paid later, or out-and-out forgiveness of part of the loan.

Other government programs offer help, through refinancing, to underwater borrowers who are capable of making payments. But there's a long list of qualifications. Homeowners who owe up to 125% of their home's current market value should see if their lender participates in the Home Affordable Refinance Program, which was extended through June 2012.

There's also an option for borrowers who are even further underwater, where participating lenders must agree to write off at least 10% of their unpaid principal balance on their primary mortgage.

Since September, the Federal Housing Administration has been offering some underwater borrowers in areas with large declines in home values -- like Miami and Las Vegas -- a chance to refinance. But that's assuming their lender agrees to write off a portion of the principal and that the borrower doesn't have an FHA mortgage but can now qualify for one.

So far, 24 lenders are participating, according to an FHA spokesman. A GMAC spokeswoman says the company will open up this program to some borrowers in the next few weeks.rning a paycheck.

Continued....

http://online.wsj.com/article/SB10001424052748703806304576239282010834982.html?r u=MKTW&mod=MKTW

Gutless Drunk
08-10-2011, 03:06 PM
FYI ...Huge rally in the mortgage backed securities markets. 30 year fixed are now in the 3's

TailgateNut
08-10-2011, 03:16 PM
FYI ...Huge rally in the mortgage backed securities markets. 30 year fixed are now in the 3's


and I'm buying!^5

phisig150
08-10-2011, 04:08 PM
I've been working in modification department for one of the major mortgage servicers for over two years. If anyone has questions regarding mods please feel free to pm me. I believe the program he is referring to in this thread is HARP Home Affordable Refinance Program. Not exactly hidden but alot of people are upside down more than 125% especially in my market and this program would not apply to them.

baja
08-10-2011, 04:41 PM
FYI ...Huge rally in the mortgage backed securities markets. 30 year fixed are now in the 3's

I don't understand this everyone knows inflation is heating up big time and they are lending 30 year fixed at 3+%. No wonder the banks are not willing to make loans. What am I missing here?

Mr. Elway
08-10-2011, 05:07 PM
I don't understand this everyone knows inflation is heating up big time and they are lending 30 year fixed at 3+%. No wonder the banks are not willing to make loans. What am I missing here?

That the banks are making those loans?

WolfpackGuy
08-10-2011, 05:09 PM
They're not making any loans unless you have 20% down.

Which kind of defeats the purpose unless you have another 20% just laying around...

Gutless Drunk
08-10-2011, 05:31 PM
They are making loans with either 5% or 3.5% down. For some reason the media seems to think that it's impossible to get a mortgage these days. It's not. It is harder then when all you had to do is fog a mirror to qualify, but I get them done without issue. It's important to deal with someone who knows what they are doing and knows how to put a deal together.

Mr. Elway
08-10-2011, 05:34 PM
Yeah you don't need 20% down. Pretty sure you can do 10, and less with FHA. This is probably one of the best possible times to get a fixed rate mortgage we'll see in our lives (and in a buyer's market no less)

WolfpackGuy
08-10-2011, 05:40 PM
I misspoke as we got 4.875 on our own FHA back in March which was 3.5% down.

You're not going to get anything in the 3's with only 3.5% down though.

I was talking more about a non-government backed mortgage with the 20% down comment.

Wells Fargo told us FHA's would be disappearing in the near future.

Gutless Drunk
08-10-2011, 05:41 PM
Yeah you don't need 20% down. Pretty sure you can do 10, and less with FHA. This is probably one of the best possible times to get a fixed rate mortgage we'll see in our lives (and in a buyer's market no less)


You can do 5% or even 3% on conventional, 3.5% on FHA. The mortgage insurance companies just relaxed their guidelines, they actually were the ones requiring more down. So you could get the conventional loan, but not the mortgage insurance. This changed in July.

Gutless Drunk
08-10-2011, 05:46 PM
You're not going to get anything in the 3's with only 3.5% down though.


FHA rates are the same with 3.5% or more down. There are no different rates for loan-to values on FHA. I could do a FHA with 3.5% down today in the 3's on a 30 year fixed.

Tankgunner95
08-10-2011, 05:50 PM
Just curious, my loan now is through Wells Fargo at 6.25 and USAA I offering 4.25 but we thinking about saleing and buying a biggest house would the refinancing hurt me in any way? I was going to ask the rep from USAA but I figure he would through me a sales pitch! We are current on everything if that makes a difference. Also, in y'alls opinion's is now the to buy if you can? Thanks!

WolfpackGuy
08-10-2011, 05:53 PM
FHA rates are the same with 3.5% or more down. There are no different rates for loan-to values on FHA. I could do a FHA with 3.5% down today in the 3's on a 30 year fixed.

What bank?

Better question: What area?

We were both over 790, and 4.875 was the best we could get.

Gutless Drunk
08-10-2011, 05:57 PM
Just curious, my loan now is through Wells Fargo at 6.25 and USAA I offering 4.25 but we thinking about saleing and buying a biggest house would the refinancing hurt me in any way? I was going to ask the rep from USAA but I figure he would through me a sales pitch! We are current on everything if that makes a difference. Also, in y'alls opinion's is now the to buy if you can? Thanks!

Refinancing probably won't hurt you in regards to the future purchase. The only instance in which it might is if your credit score is right on the cusp of being eligible. By paying off your old loan and starting a new one your score could go down a little, because one the the key factors in the score methodology is age of accounts.
However, it probably will not have a negative affect and if your scores are high it would not be a concern

Gutless Drunk
08-10-2011, 05:59 PM
What bank?

Better question: What area?

We were both over 790, and 4.875 was the best we could get.

I do not use any one bank...I get mortgages at wholesale and retail them while still beating Wells, BOFA, etc. I only do Colorado, but I can see rates for the whole country and this is available all over.

That was about right in March. Rates have come down about a full point since then. Probably about .75% of that in the last week.

Garcia Bronco
08-10-2011, 06:02 PM
Yeah you don't need 20% down. Pretty sure you can do 10, and less with FHA. This is probably one of the best possible times to get a fixed rate mortgage we'll see in our lives (and in a buyer's market no less)

If you qualify for an FHA loan.

WolfpackGuy
08-10-2011, 06:03 PM
That was about right in March. Rates have come down about a full point since then. Probably about .75% of that in the last week.

Story of my life.

LOL

We didn't really decide to get a house until the first of the year because our lease was running out in June.

Rates had been lowest in November 2010, but they were on a slight uptick when we locked in.

Gutless Drunk
08-10-2011, 06:10 PM
Story of my life.

LOL

We didn't really decide to get a house until the first of the year because our lease was running out in June.

Rates had been lowest in November 2010, but they were on a slight uptick when we locked in.

I just updated my response, Colorado. If you have a decent sized loan you could call Wells and see what they can offer for a "No-Cost FHA Streamline"
This is a non-qualifying refinance, no hassle. You have to have made 6 payments on your current loan, so you might be eligible in Sept. If they can do it for no cost, it might make sense, as there is no payback time for the closings costs. If you plan to be in the house forever, it definitely would. I could do one of these in the low 4's. If we have a couple of more days like this they might be able to do it in the 3's.
Generally speaking if the stock market is tanking rates are going down.

WolfpackGuy
08-10-2011, 06:23 PM
I just updated my response, Colorado. If you have a decent sized loan you could call Wells and see what they can offer for a "No-Cost FHA Streamline"
This is a non-qualifying refinance, no hassle. You have to have made 6 payments on your current loan, so you might be eligible in Sept. If they can do it for no cost, it might make sense, as there is no payback time for the closings costs. If you plan to be in the house forever, it definitely would. I could do one of these in the low 4's. If we have a couple of more days like this they might be able to do it in the 3's.
Generally speaking if the stock market is tanking rates are going down.

There has to be a catch somewhere, but I'll look into this next month. Thanks for the info.

We do plan on being in the house long term, but define "decent sized" loan.

We stayed well within our means and under bought by a lot for our area.

Gutless Drunk
08-10-2011, 06:33 PM
on a $200,000 loan moving one point would save $118.00.
on a $300,000 it would save $186.00.
and no there isn't a catch on these,as I have done many.
However for you there is a catch. FHA increased the amount of the monthly mortgage insurance effective April 14, 2011 so you got in on the cheaper MI, so if you did the streamline you would get hit with that increase and it would probably wash out about 36% of your savings. LOL..just your luck.

WolfpackGuy
08-10-2011, 06:38 PM
on a $200,000 loan moving one point would save $118.00.
on a $300,000 it would save $186.00.
and no there isn't a catch on these,as I have done many.
However for you there is a catch. FHA increased the amount of the monthly mortgage insurance effective April 14, 2011 so you got in on the cheaper MI, so if you did the streamline you would get hit with that increase and it would probably wash out about 36% of your savings. LOL..just your luck.

I remember that being brought up now.

Fargin bastages!

I'll check them out anyway just for the hell of it.

Money is money.

Beantown Bronco
08-10-2011, 07:10 PM
Just curious, my loan now is through Wells Fargo at 6.25 and USAA I offering 4.25 but we thinking about saleing and buying a biggest house would the refinancing hurt me in any way? I was going to ask the rep from USAA but I figure he would through me a sales pitch! We are current on everything if that makes a difference. Also, in y'alls opinion's is now the to buy if you can? Thanks!

You NEVER want to refinance if you're looking at selling in the next few years. Not because of any credit rating change, but because of the closing costs that you'd eat. You'd literally be throwing away 1,000s of dollars to save a few bucks for however many months you stay there.

Gutless Drunk
08-10-2011, 07:42 PM
You NEVER want to refinance if you're looking at selling in the next few years. Not because of any credit rating change, but because of the closing costs that you'd eat. You'd literally be throwing away 1,000s of dollars to save a few bucks for however many months you stay there.

In April of this year the Federal Reserve implemented new rules regarding how Loan Officers get compensated. As a result of this you now, most often, receive a credit towards your closing costs, with funds that used to go in the loan originators pocket. This allows for no-cost refinance options. My closing cost in Colorado on a $200,000 refinance are $1700.00, this can be paid by this credit from the lender. Today at 4.25% the credit to the borrower would be .988, so on a $200,000 loan the credit would be $1996.00, enough to cover the closing costs.

If you do not pay any closing costs and the rate is lower it can benefit even if you do not plan to stay very long. This can have an added benefit if (when) the property languishes on the market for a year, you have the option of turning it into a rental and having a better cash flow.

If tankgunnger95's loan is $200,000 My no-cost refinance today would save him $248.00 per month. Moving two full points does not equate to a few bucks, he is at 6.25%. There is no payback time because you did not pay the costs. If he stays a year that is $2976.00 savings, If he stays three years that's $8928.00 in tankgunner95's pocket.

vonqkilla
08-10-2011, 09:50 PM
I wanna sell and buy a better, newer house. I have a va loan. Can I sell this house and roll the loss into a new mortgage and new house with another va loan?

Fedaykin
08-10-2011, 10:02 PM
You NEVER want to refinance if you're looking at selling in the next few years. Not because of any credit rating change, but because of the closing costs that you'd eat. You'd literally be throwing away 1,000s of dollars to save a few bucks for however many months you stay there.

It depends entirely on the circumstances. For example, I just refinanced by 6.1% down to 4.25% with around $1800 in closing costs, and I'll be saving over $300 a month. It'll only take me ~6 months to start making out on the deal.

If I took negative points, I could have negated closing costs entirely at the cost of a higher rate (though it still would have been less than my previous rate)

Never say never: just check the math or talk to someone who can.

broncocalijohn
08-11-2011, 12:13 AM
Yeah you don't need 20% down. Pretty sure you can do 10, and less with FHA. This is probably one of the best possible times to get a fixed rate mortgage we'll see in our lives (and in a buyer's market no less)

Got a 10 year loan that also tied in our HELOC (equity) loan to our prime mortgage loan at 3.69% fixed. LOVE IT! Save about $400 to $450 (first payment next month) and have everything paid off by the time I am 51 years old. Rental condo will be paid and I will only have my Big Bear House to worry about which is half owned by 67 year old In laws (we would get their half when they pass away). It will be nice to be 51 years old, still working (not that great of the situation) and not have to pay a mortgage except $375 on the vacation home.
I had a 5% fixed when it was really good and just kept waiting. If Meck's program he discribed isnt for you, you should still shop to improve your loan and save years and money.

Mr. Elway
08-11-2011, 07:38 PM
Got a 10 year loan that also tied in our HELOC (equity) loan to our prime mortgage loan at 3.69% fixed. LOVE IT! Save about $400 to $450 (first payment next month) and have everything paid off by the time I am 51 years old. Rental condo will be paid and I will only have my Big Bear House to worry about which is half owned by 67 year old In laws (we would get their half when they pass away). It will be nice to be 51 years old, still working (not that great of the situation) and not have to pay a mortgage except $375 on the vacation home.
I had a 5% fixed when it was really good and just kept waiting. If Meck's program he discribed isnt for you, you should still shop to improve your loan and save years and money.

That's great, sounds like you managed your investments well in a crazy California market. We're buying our second home next summer and thinking about trying to do a 15 year mortgage - get in at a good price and a low interest rate, and have it paid off by the time my son goes to college. With some luck we'll see another period of strong real estate growth during that period. If we weren't looking to move I would definitely be trying to refinance right now.

tebowisdabomb
08-13-2011, 07:55 PM
My house is paid for, who cares