Thank you Leslie for the kind words, you and Joey were a pleasure to work with!

http://www.freshoutoflemons.com/something-to-talk-about/2012/4/26/15-years-32-years-and-4625.html

Have you heard of the HARP program?  I hadn’t until [...]]]> I love helping people save money and I love taking customers from Bank of America too! Here’s a review from a recently closed HARP 2.0 refinance customer.

Thank you Leslie for the kind words, you and Joey were a pleasure to work with!

http://www.freshoutoflemons.com/something-to-talk-about/2012/4/26/15-years-32-years-and-4625.html

Have you heard of the HARP program?  I hadn’t until late 2011.

What Is HARP?

If you’re underwater on your conforming, conventional mortgage, you may be eligible to refinance without paying down principal and without having to pay mortgage insurance.

In order to be eligible for the HARP refinance program :

1. Your loan must be backed by Fannie Mae or Freddie Mac.
2. Your current mortgage must have a securitization date prior to June 1, 2009.

Our mortgage met both requirements. Hip-hip-hooray!  Until I started worked on the process…I contacted the mega financial institution that services our loan— Bank of America —which has a whole department set up to answer questions about the program.  Or, rather, to tell homeowners that they don’t qualify for the program.  According to the friendly representative with whom I spoke, B of A does not allow HARP refinancing on loans that have lender paid mortgage insurance.  Guess who’s loan has LPMI?  ‘Strange…’I thought.  Why would a big business get to set their own regulations on a federal program?  And then I checked the handy HARP FAQs website:

My current mortgage has Lender-Paid Mortgage Insurance (LPMI).  Can I refinance via HARP?

Yes, you can refinance your mortgage via HARP 2.0 if your current loan has lender-paid mortgage insurance (LPMI).  It’s your loan officer’s responsibility to make sure that your new mortgage carries, at minimum, the same amount of coverage.

‘Interesting….’ I thought.  At that point, by some miracle, I came across Jonathan Blackwell, who is a mortgage consultant and loan specialist in Atlanta.  I sent him a message about my conflict with B of A and noted that my LMPI is with Radian (one of the major LPMI providers.)  He immediately responded with the following magic words:  Best answer you could have given.  I should be able to help.

He sent a link to an online application, which Joey and I sat down and completed one evening.  To go over the results, he e-mailed a video of himself explaining the paperwork, line by line.  Genius.  Joey and I were able to watch at our leisure, and when one of us inevitably asked the other “What did he say about that part?!,” we just pressed play again!  Genius.

As razzle-dazzled as we were by his technological innovation, we were even more spellbound by the interest rate that he was offering—4.625%….Our current interest rate is 6.5%!  For us, that’s over $400 in monthly savings!  Hip-hip-hooray!!!!!

There’s been plenty of other paper work exchanges, and I won’t bore you with all the details, but the process has been completely painless.  Jonathan and his associate, Tika, kept us updated as we waited through each phase and both are readily available by e-mail or phone.  In fact, Jonathan and I exchanged a few messages as I was waiting for the midnight screening of The Hunger Games to begin and he was up late, working!

I’ve been referring all my homeowner friends to Jonathan, using the adjective “awesome” frequently.  I tell each of them that I make no promises, other than that you will be working with a complete professional and an all around nice guy.  I wonder sometimes if he knows the potential for huge and meaningful impact that he has on people’s lives.  Over a year, Joey and I will save almost $5,000.  Over the life of our loan, we will save almost $85,000.  Huge and meaningful.

Thanks, Jonathan!  (And Tika!)

AND THANK YOU LESLIE!

The HARP 2.0 Refinance program is was launched in March. Many underwater homeowners are still sitting on the sidelines wondering if they should give it a go.

They are skeptical as are many loan officers that HARP 2.0 will work. They may have already been turned down for [...]]]> HARP 2.0 – Is it Helping?

The HARP 2.0 Refinance program is was launched in March. Many underwater homeowners are still sitting on the sidelines wondering if they should give it a go.

They are skeptical as are many loan officers that HARP 2.0 will work. They may have already been turned down for a HARP Refinance.

Maybe their HARP 2.0 was turned down because they have mortgage insurance, maybe because of lender overlays, maybe because of loan officer ignorance, maybe because they had a condo, maybe because the property was not a primary residence. Who knows.

Is the skepticism justified? Yes and no.

HARP 2.0 – Issues & Problems

One of the problems we are seeing are the lender HARP guideline overlays. Instead of accepting Fannie Mae or Freddie Mac’s guidelines as they were issued, many mortgage companies are adding additional restrictions.

This is not new. Mortgage lenders do this to every loan program.

The government is laying heavy fines on lenders for foreclosing on homes over semantics. The bottom line is these homeowners did not make their mortgage payments. I abhor these people that use this absurdity to skirt their obligations. The responsible homeowners should too, they are ruining it for us and I am fed up with it.

I want to repeat this in crystal clear language - if you are not making your mortgage payment DO NOT CALL ME.  The website is for responsible homeowners.

I digress, these lender overlays are making the HARP 2.0 process confusing for homeowners and lenders alike.

What was supposed to be an easy refinance program has become something different. It has become a mortgage product that requires an expert. Good thing you found us.

HARP 2.0 – What Is Closing?

If you get with the right HARP 2.0 lender then almost every HARP refinance can find a home.

• Loan to Value – not an issue for most lenders. However, some have credit score overlays that will kill your deal unless you are over 760. Some HARP lenders don’t these requirements.
• Mortgage Insurance – BIG deal for some lenders, others not so much. I have several HARP lenders that will not do any HARP refinance with MI, period. I have some that don’t care.
• Condos – No chance at some HARP 2.0 lenders, no problem for others.
• 2nd Homes – Same as condos, some HARP lenders won’t touch a 2nd home and others are will refinance.
• Investment Properties – another tricky one. Most lenders want nothing to do with investment properties, but there a select few that will still do a HARP refinance.

Bottom line, if you were turned down for a HARP 2.0 refinance don’t give up! There are options out there. Especially if your big bank turned you down. I get tons of calls from Bank of America turndowns that we are able to close.

Ready for a HARP 2.0 Quote?

Even if you were turned down you may still have options. Even if we can’t help you refinance we may have friends in our network who can. Don’t give up!

Still want to research? No problem. Check out our HARP 2.0 FAQ series and get your questions answered!

HARP 2.0 FAQ #1

HARP 2.0 FAQ #2

HARP 2.0 FAQ #3

HARP 2.0 FAQ #4 – COMING SOON

HARP 2.0 FAQ #5 – COMING SOON

Hopefully, you’ve read part one and two of our comprehensive HARP Refinance Guide. If so then thank you, but your aren’t done yet. We have more, a lot more.

If you haven’t read them yet then do your homework.

HARP Refinance – Home Affordable Program FAQ #3

Hopefully, you’ve read part one and two of our comprehensive HARP Refinance Guide. If so then thank you, but your aren’t done yet. We have more, a lot more.

If you haven’t read them yet then do your homework.

HARP Refinance – Home Affordable Program FAQ #1 drills down the basic qualifications for HARP 2.0. Get started here, make sure your loan is HARP eligible with our Fannie Mae & Freddie Mac loan search tools. We also discuss HARP closing costs options and if you can finally fire your mega-bank.

HARP Refinance – Home Affordable Program FAQ #2 digs into the appraisal guidelines, HARP 2.0 income requirements and details on how a bankruptcy or foreclosure might affect your approval.

HARP Refinance – Home Affordable Refinance FAQ #3

Is there a minimum HARP credit score? Maybe so, may be not. Depends on the lender. We are seeing 620 for the most part, we also have lenders with no minimum credit score requirements for HARP. Take a guess at who has the better HARP rate?

I’m SELF-EMPLOYED, the economy sucks and income is down. Tough spot, this is still up in the air. If we can’t help you I have plenty of miserable big bank loan officer friends that, if they already own you loan, might be able to help.

We are here to provide advice, sometimes we cannot help you. Unlike most mortgage companies, we have made sure that we have the connections to lenders that can.

Get a HARP Refinance Quote!

HARP Refinance – The Mortgage Insurance Trap

I am getting a lot of calls from big bank customers, they are saying that if you have LPMI or other types of mortgage insurance you are not eligible.

Not true, even with lender paid mortgage insurance (LPMI) you can still take advantage of a HARP Refinance. Not with every lender, the lazy ones, but with other HARP Lenders.

As far as having monthly mortgage insurance, technically HARP 2.0 will allow you to participate. Many lenders are not allowing it though in order to preserve operational excellence. Quite a few of the major PMI companies are no longer in business. Transferring the MI cert on your HARP Refinance as required will be a process in some cases.

How Long to Close My HARP 2.0 | DU Refi Plus?

Good question. Who are you using for your HARP Refinance? If you are using one of the big four banks then it’ll probably take 90 days to close.

If you work with a smaller, more nimble operation like we have then you can close in weeks, not months.

Get a DU Refi Plus Quote!

What Documentation Is Need for a HARP 2.0 Refinance

Every situation is a little different, as is every mortgage lender.

HARP 2.0 is generally low document, but if you are adding or removing borrowers then expect to provide more docs. It will depend on your HARP situation, HARP lender overlays and how wide or small your lender selection as to what documentation will be needed.

Still have Home Affordable Refinance questions? No worries, we still have two more parts in our comprehensive HARP Refinance FAQ series.

Keep checking back with us or simply fill out the contact form below and we’ll do our best to provide the answers you need.

Click HERE for Detailed HARP 2.0 Info!

So this HARP refinance has been all over the news lately but do you really understand what it is?  Do you know what makes the HARP program so special compared to the everyday loan programs that already exist?

Imagine that you live in a nice country home somewhere in central [...]]]> Indiana HARP 2.0 Refinance

So this HARP refinance has been all over the news lately but do you really understand what it is?  Do you know what makes the HARP program so special compared to the everyday loan programs that already exist?

Imagine that you live in a nice country home somewhere in central Indiana.  You bought your home eight years ago and put 10% down.  You’ve made all of your mortgage payments on time and have even made the occasional home improvement.

You keep your yard well groomed and you’ve managed to remain employed.  Your co-worker tells you about mortgage rates dropping to an all time low so you call your favorite mortgage lender and ask about refinancing.

Eventually an appraiser ends up on your door step and shortly after you’re told your home is actually worth less that it was when you bought it and you’re not eligible to refinance!

Can Underwater Homeowner’s Refinance?

How is this possible?  Unfortunately you’re not alone because most Americans are in the same position as you! The new HARP program will finally give you the opportunity you deserve to lower your interest rate, lower your payment and save thousands of dollars  in future interest!

The HARP refinance will allow you to finally refinance your mortgage into a lower rate, regardless of your current home value.  This program is only available to homeowners with conventional mortgages backed by Freddie Mac or Fannie Mae. If you put down at least 5% when you purchased your home then you’re probably eligible.

Are you under water on your current home but want to refinance into a lower payment?  The best thing you can do is fill out our short form and we’ll get in touch with you when this program launches in early Spring.

We’re The 2 Mortgage Guys and we specialize in helping home owners with their mortgages in Indiana.  Relief is finally on it’s way and we can’t wait to help you save some money on your biggest investment!

Article written by:  The 2 mortgage Guys

If you have a USDA, VA or FHA loan we might still be able to help you refinance. Get in touch with us and we’ll do everything we can to improve your situation!

We have been getting a lot of calls this week from HARP Refinance customers serviced by Bank of America. The general gist of the call was that these customers had been told their HARP 2.0 Refinance was approved, many had scheduled closings, then at the [...]]]>

Will BofA’s Split with Fannie Affect the HARP Refinance Program?

We have been getting a lot of calls this week from HARP Refinance customers serviced by Bank of America. The general gist of the call was that these customers had been told their HARP 2.0 Refinance was approved, many had scheduled closings, then at the last minute had been inexplicably denied.

I remarked to several mortgage colleagues this week that something was up. We learned yesterday that something was, in fact, up and it was something BIG!

Housingwire.com announced yesterday:

Bank of America  is faced with numerous reps and warrants challenges on the mortgage front, and as a result of growing uncertainty, it will no longer sell certain mortgage refinances into Fannie Mae mortgage-backed securities.

“The issue is tied to ongoing disagreements between Bank of America and Fannie Mae in regards to repurchases,” said Dan Frahm, spokesman for BofA.

Specifically, Bank of America will no longer place non-Making Home Affordable Program (MHA) refinance first-lien residential mortgage products into Fannie mortgage-backed securities.

Making Home Affordable is the Obama administration’s initiative to help struggling homeowners get mortgage relief through a variety of programs.

Get a Making Home Affordable Refinance Quote

So, BofA states they are still doing HARP 2.0 refinances, but that seems to contradict what their customers ware telling me in droves.

Regardless, even if they continue to participate in the HARP Program they will still offer up 60 – 120 day turn times, inexperienced loan officers and rates (from every quote I have seen) higher than the going rate for HARP.

BofA customers should also have concerns that if their relationship continues to deteriorate with Fannie Mae they may also lose the ability offer the Home Affordable Refinance Program as well

All in all, if you have a Bank of America loan then it might be a wise decision to do some comparison shopping to ensure you get the best service, rate and turn time combination available on your HARP Refinance.

Get a HARP Refinance Quote

California (2012) – The HARP Refinance program has been met with both skepticism and relief by California homeowner’s. Who’s right about HARP?

Will HARP 2.0 help? Will the HARP Refinance program be another failure like HAFA, HAMP or one of the [...]]]> California HARP Refinance

Can Obama’s Refinance Program Help California?

California (2012) – The HARP Refinance program has been met with both skepticism and relief by California homeowner’s. Who’s right about HARP?

Will HARP 2.0 help? Will the HARP Refinance program be another failure like HAFA, HAMP or one of the multiple other refinance, short sale or loan modification programs that preceded it?

The answer is clear. The Home Affordable Refinance Program is different. It is not another misguided government attempt to help underwater homeowner’s.

The HARP Refinance Program has legs, HARP 2.0 is different. Fannie Mae and Freddie Mac are on board, they have eliminated the hurdles of the original HARP Program.

They have insured that HARP mortgage lenders, second mortgage holders and others associated with mortgage lending need to play ball.

Obama’s Refinance Program eliminates a lot of the risk to HARP Refinance lenders that limited the original HARP Program. HARP 2.0 is also open to all mortgage professionals with participating lenders.

The days of waiting 90 to 120 days t0 close your HARP Refinance are over, the playing field is level. Underwater homeowner’s are no longer beholden to the underwriting, interest rate and turn time whims of the big 4 banks.

As a former loan officer at one of the big 4 mortgage lenders, I can say without hesitation that the new Obama Refinance Program is light years better than the original HARP Refinance plan.

You are probably ready for the meat of the post, you want to know if YOU qualify for a HARP refinance right? No problem, let’s cover the basic HARP 2.0 guidelines and talk about a few Home Affordable Refinance alternatives for those that need other refinance options.

Get a HARP Refinance Quote!

HARP Refinance Guidelines

HARP 2.0 Qualifications | HARP Refinance Alternatives

Not everyone will qualify for a HARP Refinance. There are guidelines, although limited, that do apply to version 2.0 of the Home Affordable Refinance Program.

• Fannie Mae / Freddie Mac – HARP 2.0 is a program for homeowner’s with conventional mortgage loans. Your loan has to be owned by Fannie or Freddie to qualify. Not sure? Check out our HARP eligibility search tool. Not finding your loan? Don’t give up, the tool is fickle. We have the capability to dig deeper, but you need to contact us.
• Closing Date – Your mortgage loan must have been originated prior to June 1st, 2009.
• HARP 1.0 Refinance – If you refinance through the original HARP plan then you are not eligible.
• Current Mortgage Payments – You have to be on-time with your mortgage. HARP 2.0 allows for NO late payments in the last 6 months and only 1 mortgage late in the past 12 months.
• Minimum Credit Score – This will vary from HARP Lender to HARP Lender, but we are seeing a 620 middle score for most of out participating Home Affordable Refinance lenders.
• Lender Paid Mortgage Insurance – Another tricky scenario, most likely if you have lender paid mortgage insurance then you will have to return to your current mortgage servicer for your HARP Refinance.

California HARP Refinance – How Do I Get HELP?

Irvine, Corona, Santa Ana, San Diego, Los Angeles or the rest of California – you have been hit hard by the real estate crash. Home prices have dropped 40% in many California cities and neighborhoods. Many people have walked away, but others have stood by the respond.

Responsible homeowner’s need a reward, the HARP 2.0 Refinance program is that reward.

Need More HARP Refinance Info?

Not sure if HARP can help you? That is what we are here for, to help homeowner’s understand their refinance choices. HARP Refinance, FHA Streamline Refinance, VA IRRL – doesn’t matter. We know the the options, we can help.

 HARP Refinance Markets: Irvine, Santa Ana, San Diego, Los Angeles, Sacramento and all California cities in between.

California HARP Refinance Quote!

Already visited our Home Affordable Refinance Program (HARP) frequently asked questions version one? If not click that link, learn the HARP basics and come back to this.

Ready? OK, moving forward. What’s next?

There’s a lot of confusion about the HARP 2.0 Refinance program. Your big four bank might tell you one thing and a professionally licensed mortgage lender might tell you another.

Who is right? It depends on your situation, but for the most part your big bank is desperate [...]]]> HARP Refinance – Home Affordable FAQ

There’s a lot of confusion about the HARP 2.0 Refinance program. Your big four bank might tell you one thing and a professionally licensed mortgage lender might tell you another.

Who is right? It depends on your situation, but for the most part your big bank is desperate to keep you. They are not happy that the Home Affordable Refinance has been opened to all mortgage professionals.

Quite frankly, I’m surprised it was.  Nearly every change in the mortgage / real estate industry in the past few years has been big bank lobby based. They have done absolutely everything in their power to destroy choice and steer you to them.

In the process they have practically ruined the housing market. Go big 4, much appreciated. The only way to make your product attractive was to attempt to make everyone else suck as bad as you do.

You failed.

HARP 2.0 opens things up. You are not stuck with your servicer, the ridiculous turn times or there untrained loan officers.  They hate that.

Need a HARP 2.0 Refinance Quote?

What is a HARP 2.0 Refinance?

• The HARP Refinance program is a mortgage refinance program designed to assist underwater homeowner’s with conforming / conventional home mortgages refinance.
• Created in 2009, the original HARP program had too many restrictions. Including adjustments to interest rate for loan to value , LTV caps and limitations to your current mortgage servicer, HARP 1.0 need an overhaul.

How Do I Qualify For a HARP Refinance?

• Your mortgage loan must have been originated before June 1, 2009
• Your loan must be owned or guaranteed by Fannie Mae or Freddie Mac - Not showing up? Fannie and Freddie make mistakes and their HARP search is pretty fickle. We can always call for you. Just let us know.
• No mortgage lates in the past 6 months and only ONE mortgage late payment in the past year.
• Your HARP Refinance must have tangible benefit. Don’t worry about the sharks, if you aren’t meeting the HARP program benefit requirements then you’re not going to get your refinance through underwriting.

My Current Mortgage Lender Says I Need to Use Them for My HARP Refinance. Is That True?

Nope, you can finally dump your bank. HARP 2.0 is available to all mortgage lenders, you can actually use your preferred lender. HARP experts with the right set-up will have multiple outlets. That means that you have options.

With options, you can choose the right combination of interest rate, turn time, closing costs and guidelines that fit YOUR personal situation.

I spent 3 years a big bank. When we did HARP loans, we were REQUIRED to lock for 90 days. We were encourage to wait 30 days into the HARP process before we locked the loan. The average time from application to closing was 120 days.

They didn’t need to provide any level of customer service, you were stuck. You wanted a HARP loan, you needed them.

Now, they are stuck. Now their absurd turn times, loan officers that don’t respond, underwriting whims and overall lack of respect for their customers will result in customers FIRING that mega-bank.

Ready to FIRE Your Bank? Do It!

Does a HARP Refinance Have Closing Costs?

People don’t work for free, of course a HARP refinance has closing costs. It’s a mortgage, you need a title agent / closing attorney. People have to process the loan and lenders have to underwrite the loan as well.

You don’t have the money to pay closing costs? Welcome to the economy. Not an issue, you have options.

When you refinance every loan officer should present you with multiple options. You should get a NO COST HARP refinance option, a LOW COST HARP refinance option and a FULL COST HARP refinance option.

As you may know, nothing is actually free. The lower your closing costs the higher your rate. It may only be .25 different then the other Home Affordable Options, but to do a no cost refinance the lender needs to cover the costs via premium pricing. Premium pricing is just a fancy term for using the profit from a higher rate to lender pay closing costs.

Does that mean that a NO COST HARP refinance is a scam? Absolutely not, premium pricing is a common way to price a no cost refinance.

Get a loan officer that provides options, review the options and decide the best option for you.

Get a HARP Refinance Quote

We are just cracking the surface of HARP 2.0, stay tuned for more FAQ’s and detailed Home Affordable Refinance info!

Home Affordable Refinance (HARP) – FAQ #2 

Home Affordable Refinance (HARP) – FAQ #3

Just how bad has Atlanta been hit by the housing crash? How many underwater homeowners does Atlanta have? Sadly, we’ve been hit pretty bad and we have nearly 400,000 homeowners that are underwater per Trulia.

As a percentage of homeowners just how many is 400,000? Well, it’s nearly 32% [...]]]> HARP 2.0 – Atlanta Effect? 

Just how bad has Atlanta been hit by the housing crash? How many underwater homeowners does Atlanta have? Sadly, we’ve been hit pretty bad and we have nearly 400,000 homeowners that are underwater per Trulia.

As a percentage of homeowners just how many is 400,000? Well, it’s nearly 32% of all ATLANTA homes.

So what do you do? Some people just walked away. Those people aren’t reading this right now, they are sitting in their over-priced apartments waiting out the 3 years you need to purchase again if you have a foreclosure.

I’m not hating on the people that handed the keys back to the bank, sometimes that makes the most financial sense. This post is not for them though, this is for the responsible Atlanta homeowner.

Remember the promissory note you signed? Yeah, I signed it too. We honored it, obligations are obligations right? At least to some of us.

So we stuck it out. Congrats! We just got rewarded. Finally, the good guys win one.

So, what did we win and why should I care?

Starting in March, responsible homeowner’s can no refinance regardless of their equity position. You read that right, loan to value is no longer a player.

The Obama Refinance as some call it, is actually a pretty smart move. It’s a reward for homeowner’s who have stuck with their pledge. Lifting loan to value restrictions will allow responsible homeowners to refinance and save regardless of their equity.

Not only will this help stabilize the Atlanta market by decreasing foreclosure and walk aways, it will allow homeowners to lower their mortgage payments. The money saved will go back into the economy. It will increase consumer spending and small business job creation. It’s a GREAT idea. Finally!

Atlanta Underwater Refinance Program

The primary goal for the new Home Affordable Program is that refinancing will put responsible borrowers in a better position by reducing their monthly payments, reducing their interest rate, reducing the amortization period, or moving them from a more risky loan structure (such as an interest-only mortgage or ARM) to a more stable product fixed rate mortgage

By allowing underwater homeowner’s the ability to take advantage of today’s lower interest rateswithout have to pay down their equity or have mortgage insurance, current homeowner’s can reduce their monthly mortgage payments, save more money and provide a boost to the economy.

That is the goal of Obama’s Refinance Program, stimulate the economy. Politics aside, if you can save from HARP then why not take advantage of it?

How Do You Qualify for HARP 2.0

In order to be eligible for the HARP refinance program :

1. Your loan must be backed by Fannie Mae or Freddie Mac.
2. Your current mortgage must have a securitization date prior to June 1, 2009
3. You need to be current on your mortgage