Refinance – Page 9

Considering refinancing your FHA mortgage? Here’s what you need to know NOW

March 9, 2012 by Rhonda Porter 2 Comments

HUD announced dramatic changes to their mortgage insurance premiums this week. If you have been considering refinancing your existing FHA mortgage by doing an FHA streamlined, you need to be aware of a couple of dates and which should cause you to either take action now or wait for your refi.

HUD has finally decided to reduce the mortgage insurance premiums on FHA streamlined refinances. HOWEVER it only applies to exisiting FHA loans that were endorsed prior to June 1, 2009. When your loan was "endorsed" is completely different than when your loan closed. HUD may take several weeks to a couple months after closing to endorse (insure) an FHA mortgage. You could have closed in April of 2009 and not have your mortgage endorsed by HUD until after June 2009 and therefore not qualify for the reduced mortgage insurance rates.

If you closed the FHA mortgage you want to streamline refinance prior to May 31, 2009, contact your local mortgage originator to see when your mortgage was endorsed by HUD. If your home is located anywhere in Washington State, I'm happy to help you with your FHA refinance and determining your endorsement date. (Currently HUD does not have a way for consumers to access this information that I'm aware of). IF your mortgage was endorsed by HUD prior to June 1, 2009, you may want to consider delaying your FHA streamlined refinance for a few weeks until June 11, 2012. Mortgage insurance premiums will be dropped, for those who qualify based on the endorsement date, to 0.01% for the upfront funding fee and the annual fee will be cut in half to 0.55%.

UPDATE APRIL 11, 2012: WE ARE ACCEPTING APPLICATIONS FOR FHA STREAMLINED REFI'S with reduced mortgage insurance – you DO NOT NEED TO WAIT UNTIL JUNE 11, 2012 TO REFI!

If your existing FHA insured mortgage was endorsed (or closed) after May 31, 2009, you will want to consider an FHA streamline refinance NOW as mortgage insurance premiums are going up. Remember, it's possible that your loan may have closed weeks before May 31, 2009 and NOT be endorsed by HUD until after the cut-off. Effective on Case Numbers (this is different than your loan application and may take place after your loan application) issued April 9, 2012 and later, mortgage insurance premiums are going up. The upfront premium will be 1.75% and monthly is increasing 0.10 for annual mi premiums. In early June, high balance FHA loans (loan amounts $417,001 to $567,500 in the greater Seattle area) will go up an additonal 0.25% for annual mi premiums.

Bottom line:

If you closed your FHA loan prior to 2009 with your existing FHA loan, it's probably safe to assume your loan was endorsed by HUD in time to receive reduced MI rates and you may want to WAIT.
If you closed your FHA mortgage from early 2009 to May 2009, you may need to check with your mortgage originator to see when your loan was endorsed.
If you closed your FHA mortgage from June 2009 or later, odds are you do not qualify for the reduced rate and, if you don't act quickly (March is your last month) to start your FHA streamlined refinance, the higher mortgage insurance rates could make it so that it's no longer worth while to refinance despite current low rates. REFI NOW if you are interested.

Don't delay – check out your options now! Remember, FHA streamlined refinances do not require an appraisal – it does not matter what the current value of your home currently is.

As I mentioned, I am happy to help you with your mortgage needs with homes located anywhere in Washington, where I'm licesned to originate mortgages.

Filed Under: FHA, Mortgage Insurance, Refinance

HARP 2 Expanded Guidelines Available Next Month

February 17, 2012 by Rhonda Porter 1 Comment

During the weekend of March 17, 2012, possibly while you're enjoying an Irish HARP's at The Celtic Swell off the shores of West Seattle, Fannie Mae and Freddie Mac will be releasing the next set of expanded guidelines for the Home Affordable Refinance (coined HARP 2 or 2.0).

Many Washington area home owners with conventional mortgages closed prior to June 1, 2009 are eagerly looking forward to this St. Patty's Day so they can take advantage of the current low mortgage rates. If you've been turned down for a HARP refinance before, you should consider trying again with this expansion.

HARP enhancements on the March 17 release include:

No maximum LTV (loan to value) ratio for fixed rate mortgages;
105% maximum LTV for adjustable rate mortgage;
More properties will qualify to have the appraisal waived, including primary residences, second homes and investment properties.

Borrowers still need to qualify with income, employment, credit and assets. If a borrower is relying on income from a second job to qualify, there cannot be any gaps of employment for that job in the last 12 months. Fannie Mae DU Plus will also require 2 months of reserves for second homes and six months reserves to be verified for investment properties.

Some Washington home owners are not waiting until next month to refinance. If Fannie or Freddie are accepting the home's current value (generally it's underwater no more than 105% LTV) they may receive an appraisal waiver. You may not have to wait either! If we do not receive an response from Fannie or Freddie with an appraisal waiver, we can work on improving your credit or savings while we wait for the next expanded guidelines next month.

If your home is located in Washington state, I'm happy to review your scenario. For your HARP rate quote, click here.

For more information about HARP 2.0, please click here.

I am required to have the language below if I am soliciting your Home Affordable Refi for your home in Washington…and yes, I would love to help you with your HARP (or any) refinance:

Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance program (HARP) and you may be eligible to take advantages of these changes.

If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.

You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:www.freddiemac.com/mymortgage orhttp://www.fanniemae.com/loanlookup/

Filed Under: HARP - Home Affordable Refi, Refinance

Should I Refinance my 4.5% Mortgage?

February 2, 2012 by Rhonda Porter Leave a Comment

I'm pricing out a scenario for one of my returning clients where I helped them with their refinance for their home in Seattle in May of 2009 to a 4.5% 30 year fixed rate. During that time, 4.5% was the lowest rate any of us had seen. Now mortgage rates have been in the high 3s to low 4s depending on current pricing and scenarios. I thought it would be interesting to share the quotes I've provided my client because I know many others have rates around 4.5% and may be wondering the very same thing: should I refi?

This Seattle home owner has excellent credit (scores above 740) and has an estimated loan to value of 80% or lower. It's possible they may qualify for a Home Affordable Refi since Fannie Mae has securitized their mortgage, however they closed right at the time where it's possible the mortgage may not have been securitized before the May 31, 2009 cut-off. Once we run the loan through Fannie Mae's automated underwriting system, we'll know whether or not it qualifies to have the appraisal waived. At this point, I'm assuming not and therefore an appraisal fee is factored into the APR.

Here's what I quoted as of 10:30 this morning on February 2, 2012:

3.750% will reduce the monthly payment by $150 and has estimated closing cost of $5620 (apr 3.909). My client will return to their current principal balance in approx. 15 months per the amortization schedule.

3.875% will reduce the monthly payment by $133 and has an estimated closing cost of $3660 (apr 3.891). My client will return to their current principal balance in approx. 14 months.

4.000% will reduce the monthly payment by $121 per month with estimated closing cost at $1779 (apr 4.080). My client will return to their current principal balance in approx. 11 months.

NOTE: Mortgage rates change constantly. For your personal rate quote on your Washington home, please click here.

The monthly savings is only one consideration. If this client were to sell in the near future, retaining his existing mortgage may be the better route as the payoff would most likely be lower with the existing mortgage for this scenario. However, if the home owner does not have plans on selling or is considering converting his home into a rental in the distant (more than 12 months) future, or if the home owner is going to use the extra monthly savings to pay off high interest credit card debt or to build savings, the refinance gains more value.

Whether or not someone should refinance is a personal decision where short and long term financial plans should be reviewed.

If you are considering refinancing your home located anywhere in Washington, I'm happy to help you. Click here for your personal rate quote.

Filed Under: Refinance

President Obama’s Refi Plan for Non-HARP Qualified Homeowners #MyRefi

February 1, 2012 by Rhonda Porter 3 Comments

On last week’s State of the Union Address, President Obama announced a plan to help underwater homeowners who do not qualify for a Home Affordable Refinance. In order to qualify for a Home Affordable Refi (aka HARP 2.0) the home owner’s mortgage needs to have been securitized by Fannie Mae or Freddie Mac prior to June 1, 2009 and meet other qualifications. If the home owner currently has a jumbo loan, they are instantly disqualified for HARP 2.0. since jumbo mortgages are non-conforming (not Fannie or Freddie programs). HARP is also restricted by existing conforming loan limits and in the greater Seattle area, the current conforming loan limit is $506,000. Even if you have a conforming loan amount of $567,500 (last year’s conforming loan limit in Seattle), current HARP guidelines limit you to a $506,000 loan amount.

President Obama’s proposal is to help underwater home owners who have made their mortgage payments on time and who do not qualify for HARP 2.0 is to allow them to have an FHA insured mortgage without an appraisal. FHA insured mortgages have different loan limits than conforming. In the Seattle area, the FHA loan limit is $567,500. Obama’s new refi program, should it come to fruition, will be limited to FHA loan amounts.

FHA mortgages are a great program, however they’re also very expensive when compared to conventional loans. This is because they have both upfront and monthly mortgage insurance fees, which are constantly being raised by Congress. FHA mortgages have both upfront and monthly mortgage insurance regardless of the loan to value of the property.

As of 8:30 this morning, an FHA rate on a loan amount of $567,500 in Seattle – Bellevue with a 720 or higher credit score is 3.750% for a 30 year fixed rate (apr 4.767). Principal and interest with the financed UFMIP is $2,654.46 and the monthly mortgage insurance premium is an additional $515.85 for a total (PIMI) payment of $3,170.31, not included property taxes and insurance. This PIMI payment equals an interest rate in the low-to-mid 5% range if you compare it to a conventional mortgage.

NOTE: Rates quoted in this post are from February 1, 2012; for a current rate quote for your home located in Washington State, click here.

This program is also costly as Obama plans to pay for it by charging banks additional fees and we all know that this trickles down to the consumer. The Temporary Payroll Tax illustrates how banks have increased mortgage rates AND the cost to extend a rate lock commitment.

It’s reported that the new program will not require an appraisal or proof of income and will be available for primary residences only. Employment will need to be verified and mortgage payments must have been made on time for the last 6 months. Although this is “Obama’s Refi Plan”, we have to wait and see if Congress approves it and how the big banks and lenders will embrace this program.

If you currently have an FHA insured mortgage, you don’t need to wait and see if Obama’s refi plan will help you. You may already be able to refinance with an FHA streamlined refi without an appraisal.

If you would like to stay informed of mortgage programs like this, please subscribe to my blog (upper right corner) or follow me on Twitter and Facebook. You can unsubscribe anytime!

If you are interested in a mortgage for a home located anywhere in Washington state, I’m happy to help you! I have been originating all types of loans at Mortgage Master Service Corporation since 2000. Click here for your no-hassle mortgage quote on your Washington property.

Filed Under: Current Affairs, Fannie, Freddie and FHFA, FHA, Mortgage, Refinance Tagged With: #myrefi, harp 3.0, obama

Fannie Mae’s Home Affordable Refi HARP 2.0 (DU Plus) Update on LTVs and Appraisal Waivers

January 4, 2012 by Rhonda Porter Leave a Comment

You won't need the luck of the Irish to refinance you underwater home in the Seattle (also known as the Emerald City) or anywhere in Washington after Saint Patrick's Day. The weekend of March 17, 2012 is when the next phase of HARP 2.0 will be officially released. And you may not need to wait until March for your HARP refinance; many are taking advantage of lower rates and refinancing now!

Per Fannie Mae's Release Notes issued yesterday for DU Refi Plus – HARP 2.0, we'll have the following enhancements:

No maximum loan to value ratio for fixed rate mortgages with terms up to 30 years
105% maximum loan to value ratio for fixed rate mortgages with terms greater than 30 years and for adjustable rate mortgages

Even though Fannie Mae states the loan to value caps will be removed, it's also noted the appraisal waiver will be "updated to further increase the number of loan casefiles that are considered for the…waiver".

This update states the following transactions will be "eligible for consideration" to have the appraisal waived:

one-to-four unit properties;
primary residence (owner occupied), second or vacation homes and investment properties;
loans with a loan to value or combined loan to value (second mortgages) over 125%;
attached (condos, townhomes) and detached properties.

You may not have to wait until March to refinance depending on how underwater your home is. I'm currently working with clients from Des Moines, Kent and Seattle who had their appraisal waived and will be closing well BEFORE March as long as Fannie Mae estimates your loan to value is 105% or lower. It's unknown what value Fannie Mae's system will accept for your home until it is submitted to their automated underwriting program (DU).

Another reason NOT to wait until March to start your HARP application is to make sure your credit and debt-to-income ratios are in line. Beginning your application today will allow us to review your current credit scenario to help assure you're in the best position to proceed with your refi, even if you have to wait until March for loan-to-value reasons.

From reading today's release notes, it looks like not all loans will qualify to have their appraisals waived…however you won't know unless you try! It's also important to keep in mind that that banks and lenders may have their own underwriting overlays in addition to what Fannie Mae or Freddie Mac offers with this (or any) program.

I am encouraging Washington home owners to contact me for a rate quote. If it looks like we should wait until closer to March to proceed, we can keep your information and try again at that time.

If you have any questions about HARP 2.0 or any mortgage for homes located anywhere in Washington, please contact me! If you want to stay informed, subscribe to my blog!

I am required to have the language below if I am soliciting your Home Affordable Refi for your home in Washington…and yes, I would love to help you with your HARP (or any) refinance:

Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance program (HARP) and you may be eligible to take advantages of these changes.

If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.

You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:www.freddiemac.com/mymortgage orhttp://www.fanniemae.com/loanlookup/

Filed Under: HARP - Home Affordable Refi, Refinance

Should You Refinance Now or Wait for the New HARP Program?

December 20, 2011 by Rhonda Porter Leave a Comment

Today someone body found my blog by googlineg: "Should I refi now or wait for the new HARP program". This is such a great and timely question that I thought I'd take a few moments to answer.

The "new HARP" is actually available now on applications that are dated December 1, 2011 and later. HARP (Home Affordable Refinance Program) is for mortgages that were securitized by Fannie Mae or Freddie Mac prior to May 31, 2009. This is different than who your mortgage servicer is (who you make your mortgage payments to) and the date the mortgage was securitized is often several weeks after the actual date your transaction closed.

Washington State home owners are eligible for this program are especially excited for the "new HARP" (also referred to as HARP 2) because of the expanded loan-to-value guidelines. Owner occupied homes will eventually have the 125% loan to value limit removed making it possible for more home owners who have made their payments on time but have lost equity in their homes to refinance into a fixed rate mortgage. Those opting for an adjustable rate mortgage will have a maximum LTV of 105%.

Why would somebody wait to refinance? HARP 2 is releasing the expanded guidelines in phases. Fannie and Freddie are allowing lenders to offer HARP (DU Plus and Open Access) with March 15, 2012 being the date that loan to value restrictions are removed for this program.

Another reason some home owners are waiting is that some private mortgage insurance companies and mortgage servicers are working out the final details on how to transfer or reissue pmi certificates. With HARP 2, borrowers with pmi should have more possibility of being able to refinance.

Why you should begin the refinance process now. I'm currently helping several Washington home owners with their HARP refi without an appraisal being required. After we receive the full loan application, we submit the loan to Fannie or Freddie's automated underwriting system to see what our approval is and what the conditions may be. Many HARP refi's are being now approved with the apprasial being waived which allows my client to decide if they'd like to lock in today's low rate now or wait and float their interest rate.

If we discover that Fannie or Freddie are not accepting the value based on the current phase of HARP we are in, we continue the application and wait for the next phase to try again. This gives us time to work on anything that may need a little extra attention such as reducing debt to income ratios or improving credit scores.

This also provides an opportunity to get our ducks in a row and have your application completely ready so that when and if your transaction is approved without an apprasial being required, you're in position to close rather than starting with volumes other home owners hoping for their HARP refi.

We are currently accepting applications for HARP 2 refinances for homes located in Washington, even if some of the refinances may have delayed closings. I have several clients who are getting ready to close just after the new year, enjoying the benefit of their much reduced mortgage payments.

If your home is located anywhere in Washington State, I'm happy to help you with your refinance, click here for a HARP 2.0 rate quote.

I am required to have the language below if I am soliciting your Home Affordable Refi for your home in Washington…and yes, I would love to help you with your HARP (or any) refinance:

Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance program (HARP) and you may be eligible to take advantages of these changes.

If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.

You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:www.freddiemac.com/mymortgage or http://www.fanniemae.com/loanlookup/

Filed Under: Charity, HARP - Home Affordable Refi, Refinance

Refinancing when you have an existing Second Mortgage or HELOC

December 15, 2011 by Rhonda Porter 62 Comments

When you are refinancing your primary mortgage and you have an existing second mortgage or HELOC (home equity line of credit), the new lender will require to stay in “first lien position”. This boils down to who has first dibs on a property in the event of a foreclosure. Lien position is determined by the date the mortgage was recorded. When you refinance your first mortgage and you have an existing second mortgage, the new mortgage will have a recording date that is after the existing second mortgage. Technically, that would put the second mortgage or HELOC in “first lien” position, which would not be allowed with the new lender. Click here for a no-hassle mortgage rate quote for your Washington state home. [Read more…]

Filed Under: HARP - Home Affordable Refi, Home Equity Loans & Second Mortgages, Refinance Tagged With: heloc, refi, second mortgage, subordination