The new San Diego Home Affordable Refinance Program will be available starting March 19, 2012 to San Diego Mortgage Brokers and Bankers. Guidelines for the new HARP program will not have the 125% Loan to Value cap it currently has for fixed-rate San Diego Refinances owned by Fannie Mae and Freddie Mac. The San Diego HARP Program will now allow homeowners who are heavily underwater with their mortgage be able to get a San Diego Mortgage Refinance.
In addition, the San Diego HARP program will be eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers who refinance. The San Diego Harp program will also be removing the need for a new property appraisal if there is an accurate AVM (automated valuation model) estimate provided by Fannie Mae or Freddie Mac.
The termination date for the San Diego HARP program has been extended until December 31, 2013 for loans originally sold to the Fannie Mae or Freddie Mac before May 31, 2009.
If you are considering a refinance in San Diego and your current loan would fall under the 125% limit still in place for the HARP Program, it may make sense to look at starting the process now. In fact, I just closed a loan using the San Diego HARP program for a client who owns a condo and the LTV was just above 120%. The San Diego HARP Program worked great for this client. We were able to get a 30 year fixed in the mid 4% range and save the client about $280 per month.
This client had mortgage insurance built into the previous loan, which meant that we had to have mortgage insurance on the new refinance. The great thing is that mortgage insurance companies are making the process easy to transfer over the mortgage insurance to the new loan if you are using the San Diego HARP Program to refinance.
There are many lenders will only allow a San Diego HARP refinance with mortgage insurance if they are the current servicer, but as a San Diego Mortgage Broker, I do have lenders who are allowing the HARP refinance program with MI even if they are not the current servicer of the loan.
If you would like to see how much you can save today by using the San Diego HARP program or would like to find out more information and get your name on a list to be contacted after the new guidelines are released on March 19th, simply give me a call or fill out the rate quote form and get your free interest rate quote today!