HARP 3.0 : Homeowners Prepare For HARP 3 Passage As HARP 2 Mortgages Slow

New data from the Mortgage Bankers Association (MBA) shows that mortgage refinances are slowing. It's a function of rising rates.

However, even as U.S. mortgage rates rise, demand for the Home Affordable Refinance Program (HARP) remains strong. There are millions of still-eligible U.S. households and many have chosen to their HARP loan while they still can. 

Through the first five months of 2013, HARP loan closings increased 60% as compared to the same period during the year prior. Furthermore, should the much-anticipated HARP 3.0program pass Congress, that figure could double, triple or more.

There is a nationwide demand for HARP 3.0. Homeowners hope to see the program by September.

Jump to today's HARP mortgage rates.

What Is The HARP Home Loan Program?

HARP is an acronym. It stands for Home Affordable Refinance Program. It's a government-backed mortgage refinance program first released in March 2009 and meant to U.S. homeowners get access to the low mortgage rates of the day.

The stated goal of the Home Affordable Refinance Program program was two-fold.

First, the government aimed to help the average U.S. homeowner save $3,000 annually via refinance. Second, the government aimed to reach seven million U.S. households.

If consumers could reduce their housing payments by $21 billion each year, the government reasoned, some of that saved money would work its way back into the U.S. economy which would help combat the burgeoning economic pullback.

Via HARP, homeowners whose homes had lost equity since the date of purchase were eligible for refinance despite having little or no home equity left. This was a big deal in 2009. Homes in many metropolitan areas were losing 10% or more of their value annually.

Within 12 months of its launch, it was clear that the "Obama Refi" program would achieve its first goal. Eligible homeowners were saving large amounts of money on their mortgage. However, the program was failing to meet its second goal.

By mid-2011, the Home Affordable Refinance Program had not even helped one million U.S. households, let along multiple millions. So, to put the program within reach of more people, the government made aggressive changes to how the Home Affordable Refinance Program program worked.

Dubbed "HARP 2", program updates included :

• Remove loan-to-value limitations; allow unlimited LTV for HARP loans
• Remove specific lender liabilities on a HARP-refinanced loans

Under HARP 2, the pace of refinancing tripled. Homeowners saved even more than the government's vaunted $3,000 target figure. The typical HARP homeowner saved 35 percent monthly.

Today, HARP 2 is on pace to top 1 million closings for the year. That tally may leap, though, if HARP 3.0 passes Congress as expected.

HARP Helping "Severely Underwater" Homeowners

As part of HARP 2.0, program guidelines allowed for an unlimited loan-to-value (LTV). It's no surprise, then, that one-in-four HARP home loans feature an LTV over 125%.

There are other interesting refinance patterns among the Home Affordable Refinance Program closings, too.

For example, in May, 25% of homeowners opted for a 15-year fixed rate or 20-year fixed rate HARP loan -- both of which can replace lost home equity more quickly than a comparable 30-year loan.

There were other notable data points, too :

• 20% of all May U.S. refinance activity was Home Affordable Refinance Program-related.
• Nearly 40% of all Home Affordable Refinance Program loans have an LTV over 105%.
• Fannie Mae securitizes 59% of May's HARP 2 loans. Freddie Mac handled 41%.

Furthermore, HARP loans remain concentrated by state. Nevada, Arizona and Florida account for a disproportionate number of high-LTV loans. Prior to HARP 2.0, these refinance opportunities did not exist.

If HARP 3.0 passes Congress this year, the distribution of HARP home loans will spread geographically. It's part of what the White House calls "A Better Bargain".

Click here to see today's HARP mortgage rates.

Are You HARP-Eligible? Automate The Process.

To date, the Home Affordable Refinance Program has reached 38% of its intended 7-million-home market. With the program slated to end December 31, 2015, it seems more and more likely that HARP 3 will pass. Rumors grow louder each month.

See how HARP program can save money. See for what rates you qualify. The process is fast and free.

Click here for more HARP-related information.

Contact The Mortgage Mark with any questions!   www.themortgagemark.com   Mark@themortgagemark.com  

Reasons Why VA Loan Applicants Love The VA Appraisal Process

With mortgage rates low and home sales rising, the VA home loan is an important part of the U.S. housing landscape. For eligible military borrowers, the VA program provides a host of borrowing benefits.

The VA appraisal is one of them.

Click here for today's VA mortgage rates.

20 Million VA Loan Guarantees And Counting

VA loans are mortgage loans guaranteed by the Department of Veterans Affairs, where "guarantee" means that the VA reimburses lenders against loss should a home go into short sale or foreclosure.

When it was initially launched in 1944 as part of the G.I. Bill of Rights, VA loans were meant to help returning servicepersons assimilate into "civilian life".

Since its inception, the VA has guaranteed more than 20 million loans.

The VA Home Loan Guaranty program helps to make homes affordable for eligible military borrowers by reducing downpayment requirements, softening qualification standards, and eliminating the need for monthly mortgage insurance, which helps to keep monthly payments low.

Furthermore, the VA makes refinancing simple.

Via its Interest Rate Reduction Refinance Loan (IRRRL), the VA backs the simplest and quickest streamline refinance available. With the "VA Streamline Refinance, there are no credit checks, no employment verifications and no debt-to-income ratios to satisfy.

All it takes to qualify for the IRRRL is a strong payment history and proof that there's a benefit with the refinance. This can include lowering your monthly mortgage payment, or switching from an ARM to a fixed rate loan.

Another VA loan benefit is its appraisal program. Different from the manner in which the FHA and both Fannie Mae and Freddie Mac conduct appraisals, the Department of Veterans Affairs uses its appraisal process to verify the home's value and to make sure that the home's condition is livable.

Here are a few quick facts about the VA loan appraisal program.

Click here for today's VA mortgage rates.

VA Appraisals Protect The Homeowner

Appraisals for VA loans go deeper than appraisals for other popular loan types. Among the differences, there are several which stand out.

VA appraisers are assigned at random

When a VA appraisal is commissioned by your lender, the job is assigned via the VA's central appraisal system. The VA's appraisal system assigns appraisers on a rotating, randomized basis. In this way, appraisers have little direct contact with lenders which helps to assure autonomy and independence.

In addition, appraisers with a heavy workload may be less likely to be assigned to your home which can help to improve appraisal completion times. Faster appraisal turnarounds can be correlated to faster closings.

VA appraisal costs are assigned by the VA -- not your lender

The VA allows buyers to purchase homes with no money down and permits certain closing costs to be added to the buyer's loan size. Appraisal costs, however, are often excluded; appraisals must be paid with savings.

To protect home buyers, the Department of Veterans Affairs enforces a VA appraisal fee schedule so you can feel safe in knowing that your appraisal costs are fair and reasonable.

Note that the VA Streamline Refinance does not require an appraisal. There are no appraisal costs associated with a VA-to-VA loan refinance.

VA appraisers will inspect your home for defects

Another main difference between VA appraisals and the appraisals required for other loan types is the depth of work required. VA appraisers are instructed to inspect and comment on a home's safety rankings and the status of its "working parts".

For example, as part of the process, the VA appraiser will perform home inspection-like duties which include a review the home's mechanical systems; its foundation; its gutters and downspouts; and, its plumbing. The appraiser will also check for carbon monoxide detectors.

The VA appraisal can help to identify potential defects in a home, but it should not be used in lieu of an actual home inspection. Buyers should always commission a home inspection separately.

Don't like your VA appraisal? You can contest it.

Appraisers make mistakes and the Department of Veterans Affairs knows it. This is why the VA employs a formal appraisal review process to which any home buyer or REALTOR® can post.

The VA calls it a Reconsideration of Value and it's most-commonly used when the appraised value of a home is less than its agreed-upon sale price. With other loan type, this scenario can "kill the deal". With the VA loan, it's just a starting point.

No evidence is needed to submit a Reconsideration of Value although providing comparable sales data and relevant market information for the home can be a help. Reviews are always fair and balanced.

Another VA Benefit : Great Mortgage Rates

For VA buyers, the appraisal process offers fairness and protection. It's another perk of the mortgage program used more than 20 million times since its inception.

If you're an eligible VA borrower, take a look at today's VA mortgage rates. Pricing is great and fees are often lower than for comparable fixed- and adjustable-rate mortgages. See how a VA loan fits your budget.

Click here for today's VA mortgage rates.

Contact The Mortgage Mark with any questions!!!   http://www.themortgagemark.com

mark@themortgagemark.com