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HARP 2.0 … Help for Underwater Homeowners … slow launch

Written by Clay on . Posted in HARP, Rate Updates

Fannie Mae and Freddie Mac systems … all updated last Monday … but it is still “wait and see” for most underwater homeowners wishing to refinance their underwater mortgage. If your first loan is a Fannie Mae loan up to 125% loan to value you are in decent shape and there are lenders ready to go. If your loan is serviced by Wells Fargo, and owned by Freddie Mac – Signet can do a new without restriction as to loan to value. Limited access to unlimited loan to value for Fannie Mae … still waiting on unlimited loan to value for Freddie Mac loan … that is still to be sorted out. The pricing, policies, and procedures for HARP 2.0 loans  and the overlays and pricing are mind boggling!  Listen to more details in this quick video update I did last week.  Stay tuned – I will keep you posted as the program  improves.   If you would benefit from the refinance of an underwater property – start with an application and we will do the automated underwriting and be ready.  It will be prudent not to be in too big a hurry to select a lender and formally submit.  Once we can be sure of the best choice for you we can move it forward. What happened to rates? The Federal Open Market Committee minutes contained a surprise that impacted the bond market recently – indicating that the FED would drop their program to purchase long term bonds which they have been doing for some time … take a big purchaser out of the market and wham – rates jumped ¼% in a day or two.  Plus continuing stock market gains have drawn funds from bonds into stocks impacting rates. A 30 year fixed loan at $417k is still between 4.125% and 4.25% (no cost) and a 15 year at 3.5% so rates are still very good.  I do not see anything on the horizon to be pushing them back down.

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