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Refinance Articles

News and information on refinancing your home in MN or WI

New Appraisal Rules starting in Sept 2011

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Appraisals are changing again.

Fannie Mae and and Freddie Mae have decided to change the way appraisers describe the quality and condition of homes.

Appraisers have always described properties as being: Good, Average, Fair or Poor – sometimes adding “very good” or “excellent” or fudging with “low-average” or “average-” – knowing that a lower condition or quality review of the home as fair or poor – you probably killed the deal.

Going forward, appraisers will need to define condition on a C1 – to – C6 scale and quality on a Q1 to Q6 scale.  1 is considered the best – for condition a new or unlived in dwelling.  A C6 condition is a property with substantial damage or other major maintenance issues.

For views, appraisers will need to use the following codes: A, B or N — what do they mean: A = adverse (hurts value or marketability); B = Beneficial (that’s good) and N = Neutral.  and if it is a view lot – how about B;MTn;Wtr — what?  Are you confused yet?

Now if you have 2 and 1/2 baths the correct way to show the count will be 2.1 and if the house has 2 1/2 baths = 2.2

For Kitchens and baths we will need to report if they have been “updated” “not updated” or “remodeled” and if the work was done in less than 1-year; 1-5 years, 6-10 years, 11-15 years ago or unknown.  An updated bath might have a new toilet, and remodeled bath an all new shower.

The change is designed to give more specific information. By using numbers, and not wiggle words like “average”, will help in underwriting loans.

The worse news is, homes rated Q5 and Q6 will NOT be allowed to be sold on the secondary market.  So if an appraisal comes back as a Q5 or Q6 (something few of us will know in advance), the loan likely will be denied by your lender.

PASS THE WORD WITH THE LINKS BELOW – THEN LOG IN AND POST YOUR THOUGHTS

 

Refinance your upside down mortgage while rates are low

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Just when you considered housing loan rates could not go down anymore, they have strike record low levels once again this week, and every homeowner should take other look at their stream situation.

Homeowners refinance for many not similar reasons. Some wish to lower their payments. Some wish to shorten the life of their mortgage. Some wish to obtain some cash out. Some wish to pay off a Home Equity Line of Credit.

There are still great mortgage programs available in today’s market. One of those allows homeowners who have lost value to still refinance in to a descend rate. Freddie Mac and Fannie Mae have allow homeowners to refinance, even if they owe up to 125 percent of the appraised value of their home. It is estimated that more than 25 percent of homeowners in the U.S. owe more than their home is worth.

However, only Freddie Mac and Fannie Mae allow for the 125 percent limit, many banks and housing loan companies only enable homeowners to refinance if they owe up to or reduction than 105 percent of the value of their home (including us). Of course, all your standard other requirements still apply (debt-to-income ratios, credit scores, etc).

Click here to see who really holds your loan (it usually isn’t who you make payment to).

Homeowners who have a second mortgage can also refinance, but no cash is allowed.

There are many factors to ponder if a refinance makes sense. One is closing costs. Many people take a NO COST loan, but we suggest you not agree to a “no cost” loan unless you entirely comprehend the differences between a standard “cost” loan and the “no cost” loan. Neither option is right or wrong, but you can pay dearly for selecting the wrong one for your individual situation.

Float or Lock a Mortgage Interest Rate?

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Mortgage interest rates — just like stock prices — change price daily and you can win big or lose big if you don’t know what you are doing.

Everyday Loan Officers are ask “what do you think interest rates are going to do?” Of course none of us know that answer, so except for the most extreme cases on a purchase transaction, I suggest you always lock, and to do it as soon as you can. The sooner you lock your rate, the less chance you have of losing in the mortgage interest rate game

If you have a signed purchase contract in hand, lock your rate as soon as possible. There is no better way to protect yourself from the fickle mortgage markets. Holding out for 1/8th – 1/4% more is just not worth the risk! If you want to gamble… go to Vegas.

With interest rates currently hovering near historic lows, the chance of any meaningful rate drop is low. The chance of rates going higher is very big.

It is better to win and lock on a known great rate, and be slightly annoyed if interest rates go down a little before closing, than to be floating and lose with rates dramatically higher before closing.

One other aspect… You have so many other things to do during the buying process than to keep stressing yourself out by looking at mortgage interest rates all day. Just lock and be done!

A refinance transaction on the other hand is different. The new refinance rate has to make sense to act. According to a recent survey, most people refinance when the difference between their current rate and any new rate is at least 1% or greater. You can potentially gamble a bit more because you are not under any time restraints, but if today’s refinance rate is close, take it and run.

Finally, we always suggest monitoring one of the interest rate advisory sites for good daily interest rate float or lock advice.

25% Equity Rule to Refi?

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A proposal put forward by federal regulators to define “safe” mortgages would raise refinancing costs for half the nation’s homeowners with home loans, a coalition of industry and other advocacy groups has said.

The Coalition for Sensible Housing Policy says that 25 million homeowners could be affected by a rule that would effectively require borrowers to have at least 25 percent equity in their homes to qualify for the best terms when refinancing a mortgage. The number amounts to more than half of U.S. homeowners who currently have a mortgage.

Most Refinances are “Rate and term” only

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“Savvy homeowners are taking advantage of some of the lowest fixed-rates in more than 50 years to lock in interest savings,” said Nothaft. “Over the first half of 2011, fixed-rate mortgage rates hit a low during June, with 30-year product averaging 4.50 percent and 15-year averaging 3.68 percent over the last four weeks of June

Freddie Mac has released the results of its second quarter refinance analysis showing homeowners who refinance continue to strengthen their fiscal house. The analysis shows that 77 percent of homeowners who have refinanced have been able to maintain or reduce their mortgage debt in second quarter of 2011.

READ THE FULL STORY

 

Is refinancing easier than buying a home?

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A refinance is just as easy to get as your first mortgage… right?

Many people think that refinancing is easier than buying a home for two main reasons:

1) you already have a loan on the home, you make your payments, so it should be easy to refinance.
2) your current mortgage lender already has all their information, so they with easily refinance you, and they are the best place to call **

Sorry… Not true on either count.

There are many factors that might make it hard to refinance:

First, understand that no matter who you call for the refinance – even your existing lender, you have to go through the full underwriting process again. With that said;

– Your financial situation could have changed. Do you have the same job, same income? Better or worse? How about credit. Better or worse?
– Mortgage loan Underwriting guidelines have changed. The crazy days of every getting a loan are long gone. Be are back to old school traditional financing guidelines. Did you buy the home on a program that no longer exists… like a no documentation loan?
– With all the foreclosures, your properties value probably went down. How does that play into your refinancing options?

Most people refinance for three main reasons.

1) Smaller payment
2) Shorter term
3) Cash out / consolidate debt

The good news is that mortgage rates in MN and WI are amazingly low right now, and lenders are still providing home loans everyday. If you are thinking of refinancing, but have been scared away by thinking you can’t for some of the reasons listed above, you are making a big mistake.

Contact a local MN or WI mortgage company with a licensed Loan Officer. Fill out a full application, and let them review your situation.

You may be very happy with the answer!

** WORD OF CAUTION: Many people make the mistake of just calling their existing lender. Almost exclusively, EVERY OTHER lender will have a better deal for you. Be sure to call more than just your current company.

Phony rate quotes, slick advertising, bait-n-switch… beware

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Shopping for a home mortgage loan? Despite Government efforts, the industry is still full of slick advertising, phony rate quotes, and bait-n-switch offers from home mortgage loan companies and banks you probably don’t want to really do business with. Joe Metzler explains…

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Need a home mortgage loan in MN or WI? Try www.StPaul-mortgage.com or www.mortgage-duluth.com

Shopping for a Mortgage Lender. Inside scoop on how to choose one

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Shopping Around For A Mortgage Lender?

Here is THE INSIDE SCOOP on how to IDENTIFY A PROFESSIONAL MORTGAGE LENDER, BROKER, and LOAN OFFICER

HERE ARE FOUR SIMPLE QUESTIONS your Loan Officer absolutely MUST be able to answer CORRECTLY. IF THEY DO NOT KNOW THE ANSWERS – RUN, DON’T WALK RUN TO A LENDER THAT DOES!

1) What are mortgage interest rates based on? (The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions. DO NOT work with a lender who has their eyes on the wrong indicators.)

2) What is the next Economic Report or event that could cause interest rate movement? (A professional lender will have this at their fingertips. For an up-to-date calendar of weekly economic reports and events that may cause rates to fluctuate.

3) When the Fed “changes rates”, what does this mean and what impact does this have on mortgage interest rates? (The answer may surprise you. When the Fed makes a move, they are changing a rate called the “Fed Funds Rate”. This is a very short-term rate that impacts credit cards, credit lines, auto loans and the like. Mortgage rates most often will actually move in the opposite direction as the Fed change, due to the dynamics within the financial markets. For more information and explanation, just give us a call)

4) What is happening in the market today and what do you see in the near future? (If a lender cannot explain how Mortgage Bonds and interest rates are moving at the present time, as well as what is coming up in the near future, you are talking with someone who is still reading last week’s newspaper, and probably not a professional with whom to entrust your home mortgage financing.)

One additional important aspect, is also understanding that not all Loan Officers are licensed. Be sure to only work with a licensed professional. You can verify a Loan Officer has a license by going to www.NMLSconsumerAccess.org

Be Smart… Ask Questions, and Get Answers!

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(C) 2011 – Joe Metzler – Cambria Mortgage, St Paul, MN #274132.

The newest NEW Good Faith Estimate for 2011

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On January 1, 2010, the government came out with a new Good Faith Estimate document for home buyers. The new document, supposedly designed to help consumers better shop for a mortgage, was and is a complete flop.

A year later, they are testing a new, new Good Faith Estimate from the new Consumer Financial Protection Bureau. You can give your input to the CFPB… Watch to learn how.

What do YOU think? Is this one a flop too? Post below!

Modified Mortgages Ineligible for Refinancing

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Previously Modified Mortgages Under Attack and maybe Ineligible for Refinancing

St Paul, MN: For many reasons, a lot of home owners have attempted and succeeded in getting their current home mortgage loan modified. Modifications come in many forms, including reduced interest rates, both short and long-term, principal forgiveness, etc.

Modifications, and short-sales, terms never heard of just four years ago, are now commonplace. Lenders have struggled on how to deal with this phenomena in terms of underwriting guidelines for future credit. Short-sales for example, are generally treated by lenders as a foreclosure. While there are some exceptions, those doing short-sales generally have no benefit credit-wise over a true foreclosure.

Now lenders are starting to deal with modified mortgages, and the determination isn’t good for the consumer. While it is still the beginning of a new credit requirement, lenders are starting to refuse to refinance any customer who currently has a modified loan. Research with lenders shows significantly more restrictive guidelines for refinancing mortgages that were previously modified for the purposes of assisting the borrower (defined as “restructured loans” by Fannie Mae and other investors).

Simply put, if you have a “modified” mortgage loan, expect that you may not be eligible to get refinanced in the future!

(Definition: A restructured loan is one in which the terms of the original transaction have been changed, resulting in absolute forgiveness of debt or a restructure of debt through either a modification of the original loan or origination of a new loan that results in one or all of the below:

  • Forgiveness of a portion of principal and/or interest on either the first or the second mortgage.
    Application of a principal curtailment by or on behalf of the investor to simulate principal forgiveness.
  • Conversion of any portion of the original mortgage debt to a “soft” subordinate mortgage.
  • Conversion of any portion of the original mortgage debt from secured to unsecured.

Refinancing? Common mistakes to avoid

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Mortgage Interest Rates are near historic lows. You want to refinance?
Common mistakes, and what NOT To Do

There are a lot of things “not to do”. I will point out only the 3 most common mistakes I see people make.

  1. Setting an unrealistic goal. I always get inquiries from people who say something like, “I have a 30 year fixed rate loan at 5.875% and I will refinance ONLY when rates get to 4.0% with no closing costs”. Sometimes I call people back and say, “Why 4%? why not 3% or 2%? They say, “Well rates are not going to go that low”. Right and they are unlikely to go to 4% with no closing costs also (“no closing cost” loans typically cost anywhere from 1/2% to .75% higher than the going interest rate) You should first succumb to the fact that once you can lower your rate with no out of pocket expense, you should probably refinance. Don’t draw unrealistic interest rate lines in the sand. They get blown away too easily.
  2. The “Once rates start dropping, they are going to continue to drop and I’m smart and I am going to lock when rates hit the bottom of the market” syndrome. It is very hard to guess the interest-rate cycle, and pretty hard to catch the bottom. Remember that rates can rise fairly quickly.
  3. “If the rate goes down just another 1/8th percent, then I’ll lock” This one just kills me! I see people lose all the time over this theory. If your current rate is 5.875% and today’s rate is 4.875%. LOCK & CLOSE! Most people have what I call “interest rate block”. They get a rate stuck in their head, and that is the rate they want, no matter what. Most people fail to realize (and most loan officers fail to show them), that the difference on the average loan over 1/8th a percent is usually less than $15 per month. If you can save $150 per month on your loan at today’s rate, why gamble? Why hold out for another $15 when the odds are against you?

Don’t get piggy. Work with us. Set a goal and lock when it gets there. Are we going to hit the bottom? Probably not. Are we going to save you money? Yes. If you can save money with no out of pocket costs, than you have nothing to lose. If you want to gamble go to Las Vegas. It’s a heck of a lot more fun. Apply Now

Extra Tricks to Save Money When Refinancing

The purpose of most refinance loans is simply to save money. The goal is to minimize your expense over the life of the loan or to minimize your monthly payment in the near future.

If you can swing it, don’t roll every cost of refinancing into your new loan. Most people escrow for taxes and insurance. If you do, your current lender must give you escrow refund within 30 days of paying off their loan. Your new lender, be it us or someone else, must take the equivalent amount of money (or more) at closing to start the new escrow account.

Remember that you always get to skip a month of payments. If you close June 5th, your first new payment is August 1st.

Knowing this, paying some of your closing costs out-of-pocket will save you even more money in the long run. Why roll in $4000 in closing costs, when you really only need to roll in $2000 ($1000 escrow refund + $1000 missed payment = $2000). Paying that $2000 over 30 years doesn’t make sense if you don’t have too.

On the other hand, some people love the fact that they didn’t pay anything out of pocket to refinance, got a nice escrow refund check, then got to miss a mortgage payment. They use the ‘extra’ money to pay bills, go on vacation, etc.

Picking a Lender & Closing Costs

Shopping for a home loan is confusing. No matter what we’re looking for — from cars to refrigerators’ — there’s a built-in element of confusion. Why? Lack of knowledge. An unfortunate rule of thumb is that the less we know about something we need to buy, the more we can expect to pay for it.

Shopping for a mortgage in Minneapolis, St Paul, Duluth, Rochester, Madison, Milwaukee, and throughout all of Minnesota and Wisconsin is complex at best — even for the savvy previous home owner. Daily rate changes, time-sensitive lock-in periods, points, lender’s fees… plus the emotional element of probably the largest financial deal any of us will ever make. Throw in to this already murky stew the ingredients of tricky internet mortgage rate advertising, commissions for every officer, agent and broker who ‘helps’ in your transaction, and the obscure differences between ‘rates’ and ‘fees.’ It’s no mystery that many buyers settle for a home loan that exceeds their monetary means out of sheer exasperation!

Please review our information on closing costs and “BAD Good Faith Estimates“. There is currently a large number of fly-by-night lenders doing some incredibly misleading rate & closing cost advertising. Remember, if it sounds too good, it probably is! Also check out my article “Best Rate or Lowest Cost” for more loan comparison information.

The Bottom Line
Remember, the first rule is that there are no rules. You should refinance if it makes sense for you. Every person & situation is different. What makes sense for one family, may not make sense for you. Call me today to discuss your wants, needs, and goals. Together we’ll determine if refinancing makes sense for YOU.

Click here for more information on the actual loan process.
Click here for 10 Tips to a Smooth Closing
Click here for 10 Mistakes to Avoid

The credit bureau is selling your info. Here is how to stop it

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Getting a mortgage loan? Beware of the credit bureau.

You’ve shopped a few lenders, gotten some quotes. You’ve narrowed your search, supplied a full application, and supporting documents. The lender has now pulled your credit report, and informed you everything looks great. You lock your interest rate, and move forward.

Suddenly, you are overwhelmed with telephone calls and an overflowing mail box with offers from competing mortgage companies. What is going on?

Sadly, there is a new and horrible marketing trend called “trigger lists”. Because the lender and pulled your credit (they had to), they triggered an  unintended event.

The credit bureaus have found another way to increase their revenue at your expense, and WITHOUT YOUR PERMISSION.

Having credit checked is an important and necessary step in the home buying process, as well as something that is done for many other legitimate reasons.  Very few people realize that each time your credit is
checked, an “inquiry” is generated on your personal credit report.

The credit bureau’s are now selling your “inquiry data”, including name, address, phone number (even unlisted), credit score, current debt, debt history, property information, age, gender, and estimated income.  They are selling all this personal and confidential information to anyone who writes them a check!

These low life mortgage lenders purchase these leads at a premium price. They then will do, and say anything they can to recoup their investment and turn a hefty profit. Bait and switch tactics are being used to lure clients away from their reputable lender. Many of our clients have even been called by these disreputable lenders and told that the lender they had been speaking to previously “passed on” the information to them!

The good news is you can make it stop immediately. The consumer credit reporting industry has provided a way to “opt out” and remove your name from these lists.  You can contact them by phone at
1-888-567-8688 or online at www.optoutprescreen.com.

You certainly have the right to shop for the best professional to meet your lending needs. This should be done on your terms, when and how YOU chose. Unfortunately at this time, these unsolicited marketing tactics are a nuisance and intrusive, but perfectly legal.

Our company, Cambria Mortgage, and my team are doing everything in our power to limit these credit report abuses. We suggest you call your representatives to let them know how you feel too.

Take the time to protect yourself from identity theft and unwanted solicitations. OPT-OUT NOW!

Are No Doc loans still available?

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“NO DOC” loans had been around for years, and served a niche market for the self-employed, commission, and tipped income home owners. Because of their additional risk, they came with higher interest rates, bigger down payments, and generally were only available to self-employed people with a minimum of 2-years provable self-employment history and trouble documenting their true income.

As the home loan markets changed through the early 2000’s, these loans grew in popularity, especially once Wall Street introduced new no doc, stated income, stated assets, no job, and other ridiculous variations with underwriting guidelines so silly almost anyone could qualify for a home loan.

These new variations turned a small niche program into what became commonly known as liar loans. This was because because both customers and Loan Officers were easily allowed to misrepresent the borrowers true circumstances.  They were highly abused by consumers, and bad loan officers everywhere, as people realized they could easily get a loan they either should not be getting at all, or more commonly, to get a bigger loan than they normally would have received.

These liar loans were one of the first casualties of the mortgage market meltdown as many of these customers were some of the very first people to end up in foreclosure. Lenders everywhere quickly pulled them from their product lines, and many states now have laws on the books banning them completely.

Unfortunately, the self-employed, commissions, and tipped income people who truly need and benefited from stated income, no documentation (NINA, NIVA, NISA, SISA) type loans are now without loan options. The old saying, one bad apple spoils the whole bunch… In this case, it was a whole bunch of bad apples that spoiled it for the one who really needs it.

If you are looking for a respectable No Documentation loan, you are pretty much out of luck, unless you are:

  1. In a state that still allows them
  2. Have excellent credit
  3. Are in need of under 65% loan-to-value
  4. Are willing to pay huge up-front costs and very high interest rates to “hard money lenders“

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Looking for a “no doc” loan in MN and WI?, Can you still get financing? Maybe, but not without fully documenting your ability to repay your loan.

But, don’t give up just yet. Let a licensed professional loan officer review a full application.

MORTGAGES for SELF-EMPLOYED, and COMMISSIONED INCOME Clients

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MORTGAGES FOR THE SELF-EMPLOYED,   COMMISSIONED, or TIPPED INCOME Clients

Self employed individuals often ask … “Why is it so difficult to qualify for mortgage financing?”

Minneapolis, MN:  Self-employed borrowers, those who work on commission, or those who receive tipped income present one of the most challenging areas of mortgage underwriting. Qualifying self-employed people often requires significant extra time, energy, and patience. A fair and honest pre-qualification requires a special set of Loan Officer skills and expertise.

Long gone are the days when any Loan Officer could give a low doc, no doc, or stated income loan to a self-employed borrower, commission, or tipped income client without any training or special consideration.

Generally speaking, it’s tougher for the self-employed buyer to qualify for a mortgage because it is hard to answer the question: “What is your income?”

What did you earn, what did you write off? Taking advantage of tax laws to reduce income is great for reducing tax liability, but also shows you make less money, making a potential home mortgage loan approval difficult.

Next lenders are looking to see a income history. Is income increasing, decreasing, or stable? This all comes into play for self-employed, commissions, and tipped income home buyers and those same type clients interested in a refinance of their existing home loan.

Today, lenders are back to the old way of providing mortgage loans, and the vast majority of Mortgage Companies, and especially Mortgage Loan Officers are either afraid to work on a self-employed persons home loan, or simply lack the extra knowledge and skill required to get self-employed people a home loan.

Reading, understanding, and qualifying a buyer off of tax returns is not for the weak of heart, or unlicensed bank reps working at a call center.

Self-Employed and Commissioned DOCUMENTS REQUIRED:

Be prepared to send us the following documents. We will be unable to assist you or evaluate you mortgage loan qualifications without them:

  • Last two years personal tax returns (all pages, All schedules)
  • Last two years business returns if employed through a corporation (all pages, all schedules)
  • Current Year-to-Date P&L (Profit and Loss Statement) and Balance Sheet

We will also require the traditional standard home loan approval documents:

OTHER INCOME

  • Copy of most recent two (2) years W-2 statements (for you and any co-borrowers)
  • Copy of pay stubs covering the last (30) thirty days (for you and any co-borrowers)

ASSETS

  • Copy of most recent monthly bank statements (ALL PAGES. If it says “page 1 of 3”, I need all 3 pages no matter what is on them.
  • Copy of most recent statements on 401K, IRA, or Mutual Fund Accounts
  • Copy of most recent brokerage statement for any stocks, bonds or certificates of deposits (or copies of actual certificate)

LESS THAN 2-YEARS SELF-EMPLOYED? YES, it is possible… But it is an exception and NOT easy to get approved. You will need to have worked in the exact same field, with a similar income, and have at least 1-yr of self employed Federal Tax Returns

Smart financial move, the 15-yr mortgage

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Smart financial move, the 15-yr mortgage

Minneapolis, MN:  “I own my home free and clear!“. How great would it be to say that? No payments when you retire. No payments while you are also paying for college. Putting money into your 401k vs paying it to the bank.
Look into a shorter term mortgage. This is the hottest new trend in home ownership.
Your parents probably took a 30-year fixed rate FHA mortgage, then tried to pay extra along the way to pay it off early in hopes of having no payments going into retirement.
During the period of 2001 – 2008, it was just the opposite. Many people opted for an adjustable mortgage, interest only mortgage, or even a 40-year mortgage. The reasoning was they would be flipping the house in a few short years at a great profit, so they didn’t really care what the payment was.
Today, old school thinking on the fast plan of a shorter term home loan is very popular.  Me me me, now now now, has been replaced with a pay it off fast mentality.
Clearly a shorter term loan saves you a lot of money in interest. On a $200,000 loan at 4.75%, the payment (just the loan) is $1043 per month. The total interest paid is a whopping $179,888. Switch that over to a 15-yr loan at 4.25%, and the payment goes up to $1504 per month, but the total interest is just $75,079. Half as much! A interest savings of $104,809

Many people claim they can’t afford the 15-yr payment, but I say otherwise. The average person can usually easily absorb the slightly higher payment with a little discipline and a slight adjustment to their monthly budget.

Eliminate the second new car, go out to a nice dinner a little less often, and shutting off the cable or satellite premium service all start to add up quickly, giving you one of the best savings opportunities of your lifetime.

I also hear many people talk about the loss of the interest tax deduction. I have a challenge for you. Can you tell me exactly what your tax write off benefit was this year?  Most people can’t.  The tax deduction is over-rated. Once you figure out how little it really adds up to in real dollars, you’ll quickly see the benefit of paying your home off faster.
Stop pissing money away on a 30-yr mortgage, refinance to a 15-yr mortgage. Earn equity faster, own your home in half the time, and make one of the best financial moves of your lifetime.

HARP – Home Affordable Refinance Program for underwater

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(edit: New guidelines issued 10/24/2011 – Click here for new rules)
HARP, the Home Affordable Refinance Program for underwater homeowners has been extended until June 2012

St Paul, MN: The Home Affordable Refinance Program was set to expire this June 30th, but has been extended one year until June 2012. The extension is great news, as HARP has been about the only success story of all the government programs attempting to stem the tide of foreclosures.

Basically if your existing first mortgage is held by Fannie Mae, or Freddie Mac, and that first mortgage is LESS than 125% of today’s value, you may qualify and be able to take advantage of today’s low rates for refinancing.

To bring even more meat to the grill, Freddie Mac has also announced they WILL NOT add recently announce cost (rate) increases to this program.

Do you qualify for HARP? Check HERE