Harp Program Will Help Refinance Mortgages…

Harp program will help refinance mortgages…

by

Ray Right

Watch the phone, and you could receive a call from the bank offering to refinance under the recently amended federal HARP program, aimed at people whose properties have lost value.\\r\\n\\r\\nAlthough the program was launched in 2009, less than two months to be amended to remove the ceiling to the gap between debt and the current value of the property.\\r\\n\\r\\nOriginally, the loan to value ratio could not exceed 125%. Now, no matter how the pricing has gone down, if you meet the other criteria, can refinance. The program also takes into consideration the credit score of the homeowner.\\r\\n\\r\\nSaving for your pocket\\r\\n\\r\\nThis could mean substantial savings for those who purchased a home before May 2009 with a conventional mortgage Freddie Mac or Fannie Mae, when interest rates were higher.\\r\\n\\r\\nPablo Perez, president of Popular Mortgage, gave as an example a client who has a 30-year loan with a rate of 6.875%, which still has 27 years. With the HARP program, could reduce the term to 15 years, with interest of 3.75% and pay only $ 100 more than now. The executive said, dropping the term, it shortens the time it takes the owner to match the debt with the current value of the property and reduces the interest paid over the life of the loan.\\r\\n\\r\\nMeanwhile, if you are looking for lower monthly payments, Perez said a case in which the customer has a balance of $ 306,000 on the mortgage at an interest rate of 6.625%. This person could refinance at 25 years with a rate of 3.875% and still save $ 403 every month.\\r\\n\\r\\nSecond Chance\\r\\n\\r\\nThe new phase came into force on December 1 and several domestic banks launched campaigns to promote the product among its customers, especially those who tried to refinance in recent months and could not because the pricing was very low.\\r\\n\\r\\n\\\\\\\”Many of these clients, two months ago, could not refinance because we had a product that is tailored to market conditions and HARP are calling to offer,\\\\\\\” said Luis Medina, vice president of origination FirstMortgage.\\r\\n\\r\\nHARP (Home Affordability Refinance Program) is aimed at people with mortgages from investors Fannie Mae and Freddie Mac, who have paid well, but whose homes have had a substantial decline in value.\\r\\n\\r\\n\\\\\\\”All federal programs that have emerged are to help clients who have had trouble paying your mortgage. This is different because it comes to helping the client that has kept your mortgage up to date despite the economic climate. They have tried to refinance, but the value of your property has decreased and not enough \\\\\\\’equity\\\\\\\’ to do. Many funded up to 100%, but requires the investor to refinance 80%, \\\\\\\”said Heriberto Mendez, regional sales manager of Scotiabank Mortgage Department.\\r\\n\\r\\nAt the moment, banks are focusing on guiding customers with a portfolio and meet the qualification parameters. However, in the coming months, is expected to refinance loans from other institutions.\\r\\nNew! Click the words above to view alternate translations. Dismiss\\r\\n

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