A few weeks ago I wrote a post about the new guidelines that were announced for the Home Affordable Refinance Program (HARP) in San Diego. The new HARP program will not have the 125% Loan to Value cap it had for San Diego Refinances on fixed-rate mortgages owned by Fannie Mae and Freddie Mac.
These changes will be a great benefit to San Diego homeowners who are upside down in their mortgage. Since there will be no Loan to Value cap for the San Diego HARP Program, homeowners will be able to Refinance even if their loan is $400,000 and their house is only worth $200,000.
It was recently announced that San Diego Mortgage Brokers and Bankers will have access across the board to the new San Diego HARP Programs in March 2012 once all of the systems have been put into place.
If you are thinking about refinancing in San Diego and your current loan would fall under the 125% limit that is still in place for the San Diego HARP Program, it could make sense to look at refinancing now versus waiting for the new guidelines to come out. Current rates are in the low 4% range and locking in a 30 year fixed rate now might outweigh some of the benefits that will come out in March if rates happen to rise. I would be happy to discuss your situation and see if it makes more sense to wait or refinance now. You can also request a Free rate quote HERE.
I also wanted to mention that if you currently have mortgage insurance on your loan, you are still eligible to take part in the San Diego HARP Program. The only difference is that the San Diego HARP Program does not require mortgage insurance if you don’t currently have it, but does require you to keep mortgage insurance if you do have it on your current loan.
I am helping a client refinance right now using the San Diego HARP Program who has mortgage insurance on her current loan. The mortgage insurance companies are making this process easy. Many lenders will only allow a HARP refinance with mortgage insurance if they are the current servicer, but I do have lenders who are allowing these refinances even if they are not the current servicer of the loan. If you would like to see how much you can save today, simply fill out the rate quote form and get your free interest rate quote today!