San Diego HARP 2.0 Program Update and Potential HARP 3.0

San Diego HARP 2.0 Program
San Diego HARP 2.0

The San Diego HARP 2.0 Refinance Program is still going strong.  Although San Diego Mortgage Rates have crept up lately, if you are considering a HARP 2.0 refinance, the rate you can get today will still be far superior to your current rate from 2009.

I am currently helping 2 sisters who bought a rental condo in 2004 near the height of the market.  Since then the value of the condo has dropped and they have not been able to refinance and take advantage of the current low San Diego Mortgage Rates.

I thought the Loan to Value (LTV) would be about 115% which would have caused the interest rate to be a little higher, but I was able to get Fannie Mae to accept a property value that allowed the LTV to be 105%.  This meant that the client could get the lower rate and skip having to get an appraisal.

I have them locked in at 4.00%, 4.068% APR.  They will be saving $460 per month.

If you would like more information on the San Diego HARP 2.0 Program click HERE to go to all my past posts on this program or give me a call at 619-312-0612 to discuss your particular situation.  As Always, if you would like a mortgage rate quote, please fill out the form to the right.

Potential HARP 3.0 Program Being Discussed

A few weeks ago, Senators Boxer and Menendez reintroduced a bill in Congress that would help more “responsible home owners” to refinance under the Home Affordable Refinance Program (aka HARP 3).  This bill was originally brought before Congress in May 2012 and then revised in September. The latest attempt is similar to September’s bill, though the HARP end date was extended with discretion given to the FHFA director to extend it further.

I have included an excerpt from Senator’s Boxer Press Release:

The current average interest rate for a 30-year mortgage is 3.53 percent – a rate that remains near its historical low. Nevertheless, there are nearly 12 million homeowners with loans guaranteed by Fannie Mae and Freddie Mac who could benefit from refinancing, many of whom cannot refinance at a lower rate because of unnecessary red tape and high fees. That red tape has limited competition among banks, so borrowers – even those who are able to refinance – end up paying higher interest rates than they would if they were able to shop around.

Under the Administration’s current refinancing program (HARP), an average homeowner saves about $2,500 per year. This bill would increase the amount they could save and expand refinancing opportunities for millions of eligible borrowers.

S. 249, The Responsible Homeowner Refinancing Act of 2013 removes the barriers preventing these Fannie Mae and Freddie Mac borrowers from refinancing their loans at the lowest rate possible. The bill would:

  • Ensure that streamlined refinancing is available and consistent for all Fannie and Freddie borrowers, regardless of whether they are underwater or not
  • Reduce up-front fees on refinances
  • Eliminate appraisal costs for all borrowers
  • Remove additional barriers to competition
  • Extend HARP by one year, to allow eligible borrowers more time to access the program.

Many clients and San Diego Mortgage Brokers were hoping that any bill brought forward would help responsible home owners who do not have mortgages securitized by Fannie Mae or Freddie Mac.  That does not appear to be included anywhere in this bill. It also would not remove the requirement that the mortgage be securitized prior to June 1, 2009.

Overall the bill proposes to encourage lenders who do not currently service the loan, that is collect the payments, to offer these refinances, reduce fees and expand eligibility.  With politics being the way they are nowadays, the passage of the bill remains uncertain. Particularly given the divided Congress and other more urgent matters (the sequester, continuing budget resolution, debt ceiling, Cabinet appointments, and so on).

As more details emerge or if it looks likely that a bill will pass, I will update my blog.  Please check back in or subscribe to my RSS feed.

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