NEGATIVE EQUITY REFINANCING

 | Comments Off on NEGATIVE EQUITY REFINANCING

The Home Affordable Refinance Program (HARP) is now available to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 100%. Under the HARP Program, many of them will now be eligible to refinance their loan to take advantage of today’s lower mortgage rates or to refinance an adjustable-rate mortgage into a more stable mortgage, such as a 30-year fixed HARP loan.
The HARP Program and HARP 2.0 are available now.
For a full description of this great program and to see if your loan qualifies go to http://www.harploan.org/faq.html
Here are some recent statistics to illustrate the success of HARP 2:
o. One in 7 of all refinances in the 1st quarter of 2012 was through HARP.
o. The number of refinances in the 1st quarter was double that for the last quarter of 2011 driven by a sharp increase in those with above 105% Loan to Value (LTV)
o. FHFA officials attribute the increase to the removal of the loan-to-value (LTV) ceiling for borrowers who refinance into fixed-rate loans and the elimination — or lowering — of fees for certain borrowers.
o. In March, there were nearly 80,000 HARP refinances, a quarter of them on loans with LTVs greater than 105 percent.
o. More than 4,400 loans with LTVs greater than 125 percent were refinanced since the beginning of the year; over half these loans were refinanced in the states of California, Florida, and Arizona.
• The number of loans refinanced through HARP in the first quarter of 2012 nearly doubled compared with the number of loans refinanced through HARP in the fourth quarter of 2011, driven by a sharp increase in the number of loans refinanced above 105 percent LTV.
• In March, there were nearly 80,000 HARP refinances, a quarter of them on loans with LTVs greater than 105 percent.
• More than 4,400 loans with LTVs greater than 125 percent were refinanced since the beginning of the year; over half these loans were refinanced in the states of California, Florida, and Arizona.

You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments are closed.