Florida HARP Loan Refinancing & Rate Information
Do you owe more on your home than it’s worth? Have you been making timely monthly payments but have still been turned down for a refinance mortgage at a lower rate because your home has depreciated in value? Are you struggling to make your mortgage payments? Want to move from an ARM to a fixed rate mortgage but do not qualify under conventional loan refinancing underwriting guidelines? Even if your lender has turned you down for traditional home refinancing because your loan to value ratio is above the accepted maximum, you may have option such as a HARP loan. There’s no need to suffer under the oppression of mortgage payments that are higher than you can reasonably afford to spend, given the current market value of your property.
Can you answer yes to these two questions?
- Was your mortgage taken out with Fannie Mae or Freddie Mac before May 2009?
- Is your loan to value ratio over 80%?
If you can answer yes to these two questions, you may qualify for a home refinancing loan with The Home Affordability Refinancing Program (HARP 2.0). The HARP loan program was designed to help homeowners who suffered with significant property devaluation after the housing market crash. HARP loans allow you to refinance your mortgage into today’s low interest rates regardless of the value of your property, often with no appraisal required. Refinancing under the HARP loan can lower your interest rate, lower your monthly mortgage payment, and give you more disposable income every month. But be forewarned…the lender you use makes a big difference in how your HARP application will be handled.
Not all HARP lenders are equal.
Understand this: the bank does not really care what your house is worth. Whether it is worth far more than you have paid or far less doesn’t matter. The only factors your bank is interested in are whether or not you have been making timely monthly payments and whether or not you have the income to qualify for the new mortgage.
However, the limits and restrictions on a HARP refinancing are not evenly set across the board and each lender has their own specific guidelines regarding HARP loan applications. Even if you appear to qualify for a HARP 2.0 loan, some lenders may have particular criteria regarding how upside-down you are allowed to be (upside down refers to how much you currently owe on your mortgage versus the value of your property) that are difficult for you to meet. HARP loans are packaged and sold to Fannie Mae and Freddie Mac, so it doesn’t matter which lender offers them and no lender is ever required to approve your loan. Because of this, you may find it difficult for you to refinance under the HARP program with your current lender.
A common misconception is that you must go to your current lender to apply for a HARP loan. This is simply untrue! If your bank has told you this, it is a lie.
You have the right to approach multiple lenders when seeking a HARP refinancing loan.
Rates and fees fluctuate and vary from one bank to the next. These often high-cost lenders understand that when you believe you must go to them for all of your mortgage refinancing needs, they have the opportunity to charge you a higher rate and higher closings costs than you would get elsewhere. This is not to say that your current lender will not give you a good deal. It simply means that you have the right to shop around for the best lender to suit your refinancing purposes and you should utilize this right.
Do I need a mortgage broker to apply for a HARP loan?
There are several advantages to having a mortgage broker help you with your HARP loan. A big reason is that they have access to multiple lenders. If you find that you do not meet a particular criteria or restriction, your mortgage broker can submit your loan application to other lenders who offer more flexible HARP guidelines. It’s extremely important that you take advantage of the opportunity you have to look around for the best rate and options because something else many homeowners do not know is this:
You can only refinance your loan under the HARP loan program ONE time.
If you do not invest the time and energy it takes to find the best rate (or have a qualified mortgage professional invest the time for you) you could end up stuck with a new mortgage than will costs you thousands more than necessary. The right mortgage company can help you find and secure the lowest possible rate and lowest closing costs. Your current lender has no reason to offer these advantages to you, as they assume you will apply for your HARP refinancing loan with them anyway. A mortgage broker is that you will have the opportunity to take advantage of wholesale rates that you cannot find with a traditional bank.
Before you apply for a HARP Loan refinancing:
Before you apply for a HARP refinancing, it’s a good idea to find out who holds your home loan. Your current mortgage must have been originated or refinanced by Freddie Mac or Fannie Mae prior to May 2009.
HARP Loan initial qualification step:
Find out if your home loan is backed by Fannie Mae or Freddie Mac?
Make sure that if you do a HARP refinancing you do it the right way. Your future financial security depends upon you making the right decision regarding your mortgage loan.
Call (888) 515-6048 to speak with a licensed mortgage professional or complete the fast quote form now.
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