Direct Link:

http://www.youtube.com/user/RealEstateBuzzz?feature=mhee#p/u/0/8GWw3OWohcI

The Buzzz is growing for the “Home Affordable Refinance Program” revisions, referred to as HARP 2.0. Well HARP 2 is finally coming Spring of 2012!

Related Links:

Feds Announce Bay Area Real Estate Mortgage Interest Rates to Stay Low Until 2014 in Alameda

Harp 2 Guidelines for Refinance Appraisals Waived Alameda,CA

Direct Link

http://www.youtube.com/user/RealEstateBuzzz?feature=mhsn#p/a/u/0/FQw1fPRZuLM

The big news this week is HARP.

THE Home Affordable Refinance Program has been “re stringed”

HARP was designed to assist distressed borrowers who are current on their mortgages but “underwater” meaning they owe more than their home is worth.

It’s no surprise several studies identified these borrowers as being likely to strategically default on or walk away from their homes and foreclose.

While regulations won’t be finalized until November 15^th the changes to “Harp 2” include -

•Removing the 125 percent loan-to-value.

•Waiving risk-based fees on borrowers who take shorter term mortgages and reducing those fees for others.

•Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the GSEs

•Eliminating certain representations and warranties required of lenders to obtain the GSE guarantee. This will protect lenders from many of the buy-back requirements they face under current guidelines

•Extending availability of the program through the end of 2013

These changes may allow double the homw owners the opportunity to refinance but still will help only borrowers who are current on their payment and who have loans guaranteed by one of the GSE’s, Fannie or Freddie prior to July 2009.  Thus it will impact only a small percentage of underwater borrowers.

Credit Suisse estimates 720k borrowers will be able to refinance which translates to between $2 and $3 billion in interest savings; so HARP 2 will not have a huge effect on the economy or on the real estate market.  

To find out if your home is owned by Fannie or Freddie you can contact my team at info@garrick.biz .

The program is set to come out November 15^th  2011.

Related Links…

The New Government Refinance Program Alameda

http://the-buzzz.com/2011/08/31/the-new-government-refinance-program-alameda-mortgage-minute-real-estate/

Don’t Stop Believing – Camille and Kennerly -

http://www.youtube.com/watch?v=XkINiWyyfyI&feature=related

I searched “2 harps” and now my wife and I are huge fans!!!!

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Interest rates YET AGAIN have hit all-time lows! This taken From the Mortgage News Daily -

“After yesterday’s FOMC Announcement, Mortgage Rates moved to all time lows.  The rally in bond markets extended overnight and throughout today’s trading, resulting in rate offerings improving even more.

Please keep in mind that lenders simply cannot move mortgage rates lower at the same pace as a rapid rally in Benchmark Treasuries.  Although you might hear talking heads on TV or read articles saying that mortgage rates are tied to Treasuries, THEY ARE NOT, and you’ll be perennially frustrated if you expect them to be. Today’s Rates:  The current market is in a state of flux at the moment and mortgage rates moving up and down around ALL TIME LOWS. 

Whereas Best Execution 30yr Fixed rates were mostly near 3.875% yesterday with some lenders at 4.0%, today, they’re closer to 3.75% with quite a few lenders still at 3.875%.  FHA/VA deals are in a bit of a predicament that’s keeping them blocked off below 3.75% (there’s no secondary market for rates any lower than that right now!).  For similar reasons, 15 year fixed conventional loans may be stuck at 3.25%.  The secondary market factors driving adjustable rate loans are in a massive state of flux, but one that is mixed between positive and negative.  5 year ARMS remain near 3.125%, but with variations from lender to lender.  Bottom line, adjustable rates aren’t participating in this rally to the same extent as fixed rates.

Lenders also must be careful not to lower rates so quickly that borrowers who recently locked actually break those lock commitments in order to move down to a lower rate.  Even if borrowers do this at the same lender, it costs lenders a lot of money.  So whether it’s to avoid that sort of cannibalization or to avoid capacity issues, there’s an elevated risk right now of lenders RAISING rates without warning, even if the underlying market movements would not suggest it.  If you remember “the wall” that existed for a long time in loan pricing moving from a 4.75% Best Execution to 4.625%, the same underlying problems will make it a slow, difficult process to move from the high to mid 3’s, and one that might not happen at all.  If you’ve been waiting for an opportunity to lock in the high 3’s, you now have it.”

So if you are looking to refinance best to move quickly currently refinances are taking 45 days.  Feel free to contact us for a list of documentation needed to start the process.

Please email me at info@garrick.biz or fill out this form if you would like a quote for purchase or refinance:

http://www.garrick.biz/forms/rateTracker.html

Related Stories:

Information on the Government Refinance Program:

http://www.youtube.com/user/RealEstateBuzzz?feature=mhee#p/a/u/1/tLW3_dfS_SI

Debt Ceiling Raised Rates GO NUTS

http://www.youtube.com/user/RealEstateBuzzz?feature=mhee#p/u/5/Db_JxgC2xu4

Original Article…

http://www.mortgagenewsdaily.com/consumer_rates/230011.aspx

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Having trouble viewing? Watch on You Tube!

http://youtu.be/tLW3_dfS_SI

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With home values still declining in the Bay Area many homeowners cannot take advantage of today’s low rates on a home mortgage loan refinance. Values in the Bay Area are still declining and we see appraisal issues quite often when refinancing properties in San Francisco, Oakland and Alameda.

If you are an eligible veteran or member of the armed forces and currently have a conventional loan, then yes, you can refinance into a VA loan! In fact, we are working with a client here in Alameda, CA doing exactly this type of refinance, and the great news is he will be saving $600 per month!

Transferring from a conventional mortgage to a VA mortgage is known as a “Conventional to VA Refinance Loan,” and is a very straightforward process.

Here are some of the advantages offered by switching from a conventional mortgage to a VA mortgage:

• You may be able to lower your interest rate and your monthly payment with low VA refinance rates.

• You are not required to put any money down to get a VA loan refinance.

• Private mortgage insurance is also not required even for those borrowing more than 80% of the home’s value. Not having to pay private mortgage insurance (or PMI for short) can result in significant savings.

• You have the option of refinancing to a fixed rate mortgage to ensure that your interest rates do not fluctuate over time.

Remember, even if you can only lower your interest rate by a .5% percent you could be saving thousands of dollars over time!

Add to that the saved costs of not having to pay private mortgage insurance, and you’re truly looking at substantial savings in both the long and short run.

If you are comfortable with your current mortgage payment you could choose to pay off your loan more aggressively by selecting a shorter term for your refinance loan.

By moving from a 30 year loan term to a 20 or 15 year term you will pay off your loan years sooner, eliminating a decade or more of interest payments. In addition, interest rates for shorter term loans are often lower than 30 year term loans and will save you thousands of dollars in interest paid. 

As always, if you or someone you know is looking to explore their options with VA financing feel free to contact us, The Werdmuller Group. We are here to help and we love serving those who serve.

Other VA Posts You May be Interested in:

VA Mortgage Loans in Alameda, CA- a Piece of Island History

VA Interest Rate Reduction Loan

VA Loan Requirements and Eligibility in Alameda, CA

Approved Property Types and Loan Limits for VA Loans