In today’s housing market some homeowner’s are underwater in their mortgages and are frustrated, with no place to turn. Now things are changing. New financial tools and calculators will give lenders like Delaware Financial Capital Corp. the opportunity to help homeowners who owe more than their homes are worth and refinance into lower interest rates. Lower rates will mean monthly savings and a little breathing room and additional cash flow for a lot of homeowners. If someone who is buying their home is getting a lower rate, why should you be able to take advantage of these historical lower rates to help you. Yes, there is hope for you now there is the Home Affordable Refinance Program part two, or “HARP 2.0” as it’s called.
For mortgages backed by Fannie Mae and Freddie Mac (the largest investors in the mortgage market) before May May 31, 2009 there will be no more cap on the LTV. It was 125% as the limit, but now people who’s values have fallen below their loan amount can possibly get help refinancing. Many fees have also been eliminated, making it more affordable to refinance. HARP 2.0 also eliminates the need for a property appraisal when there is a reliable “automated valuation model” estimate provided by Fannie Mae or Freddie Mac. Homeowners must also be paying their bills. You can’t have any late house payments in the last 6 months, and only 1 in the last 12 months. So this program extension is clearly meant to help people who are trying to pay their bills, and are seeing their values fall.
For a long time, many lenders like Delaware Financial Capital Corp. weren’t able to help very many homeowners because of the regulations on programs like HARP 1.0. Now new financial underwriting tools from Fannie Mae and Freddie Mac is opening up the door for lenders to help more people lower their rates and increase their monthly cash flow.
The goal of this push is really two-fold.
One: This is your time to reap rewards. You have stayed in there through the tough market and paid your house payments even as values dropped and because you have done the right thing, it’s time for you to reap the rewards.
Two: Lower interest rates mean lower payments which leads to more money in your pocket and more cash flow.
Want to find out if you and your home might qualify for HARP 2.0? It may be that you do. Did you know that about 1 in 5 American homeowners are underwater, so there are many who could use this help? Here’s a look at the key questions you need to answer to see if you’re on track to getting the chance to refinance.
- Did you buy your house before May 31, 2009? This is the first step to determine if you are eligible. If so, you may qualify.
- Does Fannie Mae or Freddie Mac “own” your mortgage loan? If so, you may qualify. It’s a simple process to find out by calling Sam at 302-266-9500.
- Next, you must be credit qualified. The better credit score you have, the better your rate and ability to refinance. . Credit scores in the upper 680 or higher, will give you a high probablity of refinancing.
One of the exciting things about HARP 2.0 is that with the new financial underwriting tools, you may not need to pay for an appraisal. If the appraisal is waived this will help save you money doing your refinance. . Also, the HARP 1.0 focused on the mortgage company that serviced your loan, the new HARP 2.0 opens it up to lenders who don’t have your loan. In other words, small lenders that can handle these inquires. Many larger lenders are taking 2-to-3 months to get to homeowners. Instead of waiting, call Delaware Financial Capital Corp. and you’ll talk to someone right away.
You can contact us to see if you qualify for HARP 2.0. Click the button below and, simply ask in the message area about HARP or refinancing an underwater mortgage.