Fannie Mae And Freddie Mac Announce HARP Update; More U.S. Homeowners Now HARP-Eligible

The Federal Home Finance Agency (FHFA) has released a formal HARP update.

Effective immediately, the start date HARP-eligible loans must be on, or before, May 31, 2009 where "start date" is defined as the note date -- the date on the mortgage. Previously, HARP was only available to homeowners whose mortgages were sold and securitized on, or before, May 31, 2009.

It's a small change, but one that brings the program closer to HARP 3.

Click here to get today's live HARP mortgage rates.

HARP : Saving Homeowners $21 Billion Annually?

The Home Affordable Refinance Program is nearly 5 years old. It was first introduced in March 2009 as part of that year's economic stimulus, and will be available through the program's December 31, 2015 end date.

HARP is touted as the "underwater mortgage". It makes today's low mortgage rates available to homeowners whose homes have lost value since purchase.

When it was first launched, HARP was timely. Home values were sinking as fast, as were mortgage rates. Homeowners with Fannie Mae- and Freddie Mac-backed mortgages, however, were unable to refinance. They lacked sufficient home equity to qualify for a loan.

HARP mortgage guidelines instructed lenders to overlook a homeowner's loan-to-value (LTV)and to refinance their home loan anyway.

Interestingly, HARP was not billed as a housing market stimulus but, rather, an economic one. The government's goal with HARP was to boost consumer spending.

By giving U.S. homeowners access to lower mortgage rates and payments, the government posited that households would have more available money to spend on goods and services.

How much more? How about $21 billion, based on two government claims about HARP. First, that the program would save the typical U.S. household $3,000 annually; and, second, that it would reach 7 million households nationwide.

After two years, though, it was clear HARP would fall short of its 7-million target. To put the Home Affordable Refinance Program in the hands of more homeowners then, in late-2011, Fannie Mae and Freddie Mac began lifting program restrictions.

Gone was the requirement that HARP loans cap at 125% LTV. Gone was the requirement to use your same mortgage servicer. Gone was the verification of income, assets and credit. Via "HARP 2.0", homeowners could refinance at any LTV with any mortgage lender with fewer hurdles.

The program bore a strange resemblance to the Federal Housing Administration's FHA Streamline Refinance and the Department of Veterans Affairs' VA Streamline Refinance.

HARP was redesigned as the "streamline" conventional refinance and, under the HARP 2 rules, there have been an additional 1.7 million closings.

Now -- again -- Fannie Mae and Freddie Mac are tinkering with HARP.

They've already extended the program deadline by two years this year to December 31, 2015. Now, they're updating the program's eligibility requirements. It's another small step toward the release of HARP 3.

Updated HARP Eligibility Requirements

Mortgage rates today are lower than the government ever expected. As a result, today's HARP-refinancing homeowners are saving more money than the original projections ever predicted they would.

At today's low rates, for example, to meet "$3,000 in annual savings", your original mortgage loan size would have to have been $163,000. This is a small percentage of the U.S. population. Many homeowners borrow more than that and, if you loan size was bigger, your savings are bigger, too.

A homeowner whose original loan size was $250,000 could use HARP to save $4,800 per year, and a homeowner whose original loan size was $400,000 can save $8,000 annually.

Despite these benefits, HARP refinance volume has slowed nationwide.

In August, the number of HARP mortgages fell to its lowest point since the launch of HARP 2.0 and interest in the program appears to waning. Likely, this is an awareness issue because there are millions of U.S. households still eligible to HARP.

Maybe you're among them. The eligibility requirements for HARP are basic :

1. Your loan must be backed by Fannie Mae or Freddie Mac
2. Your mortgage note date must be on, or before, May 31, 2009
3. Your loan must be current, with no "late pays" in the last 6 months

Beyond that, HARP guidelines are similar to other streamlined refinance loans -- documentation requirements are fewer, appraisals can be skipped, and underwriting turn times tend to be faster.

Unless volume increases, though, it's likely that HARP 2.0 will be revamped much like its predecessor.

HARP 3 could feature a host of changes including opening the program to non-Fannie Mae and non-Freddie Mac homeowners; extending the program's start date from May 2009 into 2011; and, allowing the "Re-HARP" of an existing HARP home loan.

A HARP 3.0 bill is currently in committee in Congress. Fannie Mae and Freddie Mac could wait for its passage, or release additional HARP updates on their own.

See Today's Low HARP Mortgage Rates

The HARP program is expanded and available to a wider group of U.S. homeowners than ever before. Plus, with mortgage rates dropping, the opportunity for savings remains huge.

Take a look at today's live mortgage rates and see how the government's HARP refinance can help you save money.

Rates are available online for free, with no cost or obligation.

Click here for today's live HARP mortgage rates.

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Applying For A VA Loan? Here’s How To Get The VA Certificate Of Eligibility (COE) You’ll Need

Like all mortgage approvals, the VA loan comes with a specific set of required paperwork. Among the most important documents required for VA loan approval is what's known as the Certificate of Eligibility (COE).

The COE is a home buyer's evidence of VA loan eligibility. It assures a mortgage lender that the borrower meets minimum VA loan standards which includes term of service requirements. 

Without a proper COE, it's a challenge -- but not an impossibility -- to get a VA loan approval.

Click here to start confirming your VA loan eligibility.

Want Your COE? Try The "Easy Way" First.

There are several ways to get your VA loan COE. The easiest way is to ask your VA-approved lender to access the Department of Veterans Affairs website, called Web LGY.

Web LGY is the VA's web-based loan guaranty system, and it's not accessible to the public. It's for authorized VA lenders only. Via Web LGY, mortgage lenders can establish VA loan eligibility quickly, then issue a COE online.

This is a process which takes minutes -- not hours or days.

For instances when the VA lacks sufficient data to process a COE online, requests may be made via the U.S. Postal Service. The VA discourages such "manual"  requests, though. Active-duty servicepersons and military veterans are encouraged to ask lenders to process COEs electronically via Web LGY.

The only VA loan borrowers who do not need a COE are those who are applying for the VA Interest Rate Reduction Refinance Loan (IRRRL). Also known as the VA Streamline Refinance, the IRRRL does not require a COE because a COE was provided when the original loan was obtained.

Click here to start confirming your VA loan eligibility.

Filing Your Form 26-1880 With The VA

As part of the VA loan COE process, servicepersons on active duty, veterans and members of the National Guard and Reserve forces might also need to complete VA Form 26-1880, Request for Certificate of Eligibility.

The purpose of the Form 26-1880 is to supply data which is required to obtain a proper Certificate of Eligibility to the Department of Veterans Affairs. Form 26-1880 can be completed electronically or longhand via paper. Your mortgage lender can submit your Form 26-1880 via Web LGY on your behalf.

The good news is that Form 26-1880 is short -- it's one page in length. It asks for such basic information as :

• Your full name
• Your date of birth
• Your telephone number
• Your home address
• Any "alternate names" or aliases you may use

It also asks for your dates of service, your current service status, and information regarding any prior VA loans for which you were approved. 

Servicepersons on active duty are expected to provide an additional statement of service. This statement should include your name, your date of birth, your active-duty entry date and your duration of any lost time, among other fields.

Active duty servicepersons should have this statement signed by, or at the direction of, the adjutant, personnel office or commander of the unit or higher headquarters.

Your VA lender can help you write this letter.

In addition, veterans should prepare to present a copy of their report of discharge, DD Form 214, Certificate of Release or Discharge From Active Duty. This document should state the character of your service and your reason for separation.

As before, your lender can submit these documents to the VA through Web LGY on your behalf. There's no need to handle it yourself.

Click here to start confirming your VA loan eligibility.

Filing Your Form 26-1817 With The VA

Reservists, National Guard members, military spouses and others who may be VA-loan eligible are required to show a valid VA Certificate of Eligibility, too. This form might not be the same as that for an active serviceperson or veteran.

For example, surviving spouses are often asked to provide COE information to the VA via Form 26-1817, Request for Determination of Loan Guaranty Eligibility -- Unmarried Surviving Spouses.

It should be noted that Form 26-1817 may not be submitted electronically via Web LGY.

Eligible surviving spouses must submit Form 26-1817 to the VA via the U.S. Postal Service. This means that processing time will be delayed compared with an electronic filing. Surviving spouses of military veterans, therefore, should prepare to plan ahead for using VA home loan benefits.

Processing Form 26-1817 may require as many as three months.

Get Started With Your VA Home Loan Approval

VA home loans are different from conventional loans or FHA-backed mortgages because only military personnel and their families may be eligible. The rewards, though, are terrific.

Via its loan guaranty program, the VA allows for 100% financing with no required mortgage insurance. The VA also will often make "jumbo loans", which are for larger amounts, at conforming-like mortgage rates.

To get your VA Certificate of Eligibility (COE), remind your lender that you need one. The approval process takes just minutes.

Click to confirm your VA COE.

Contact The Mortgage Mark with any Questions!!!

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8 Behaviors To Avoid While Your Mortgage Application Is “In-Process”

8 Behaviors To Avoid While Your Mortgage Application Is “In-Process”

For all the talk of how tough it is to be "mortgage approved", the basics of mortgages haven't changed. Mortgage approvals are still a combination of showing good income, equity, and credit.

For some mortgage applicants, though, it's not getting approved for a mortgage that's the hard part -- it's staying approved for a mortgage.

There are plenty of land mines in the mortgage approval process. You'll want to stay clear of them.

Click here to see today's low mortgage rates.

When Things Go Wrong With Your Mortgage

Mortgage approvals take time. In a typical home loan market, 45 days is normal time frame.

Approvals can take longer, though, depending on the market environment. For example, if rates are low and there's a refi boom on-going, getting a refinance to close can take as much as two month -- especially for "complicated" loans which require additional paperwork such as the 5-10 Properties Program.

Banks just don't have capacity to work much faster.

Closing times can also be delayed for buyers of short sales and foreclosures. Loans for distressed sales and REO sometimes take 6 months or longer to get to settlement.

Thing is, during that "extra time" it takes to close -- whether it's 3 weeks, 3 months or longer -- your life is subject to unexpected change and when your life changes, your loan can, too.

For example, if lose your job, become ill, or have your home damaged by storms, your lender can rightfully revoke your mortgage approval -- even if your loan was previously cleared-to-close.

Some life events are beyond your control. You can't control sickness any more than you can control Mother Nature. But some events are within your control.

In the world of mortgages, good behavior does matter.

Bad Mortgage Behavior, Defined

Keeping "good behavior" in mind, here are 8 things you should absolutely not do between your date of application and your date of funding. Any one of them could force a revocation of your mortgage approval.

Ignore these rules at your own peril. 

1. Don't buy a new car or trade-up to a bigger lease
2. Don't quit your job to change industries or start a new company
3. Don't switch from a salaried job to a heavily-commissioned job
4. Don't transfer large sums of money between bank accounts
5. Don't forget to pay your bills -- even the ones in dispute
6. Don't open new credit cards -- even if you're getting 20% off
7. Don't accept a cash gift without filing the proper "gift" paperwork
8. Don't make random, undocumented deposits into your bank account

And that's it.

Now, you may find it 100% impractical to have follow these rules to the letter. I know that.

For example, if your car lease is expiring, you have to do what you have to do. Renew the lease. Before doing it, though, check with your loan officer -- spreading your lease over 60 or 72 months may be better for your debt-to-income (DTI) ratio. 

The same goes for accepting cash gifts from parents. There's a right way and a wrong way to accept a cash gift for a purchase and if you do it the "wrong way", your lender may disallow the gift and deny the loan.

These are just 8 of the behaviors which could sabotage your loan. There are more, of course, and your lender will help you identify them. 

Good Loan Approvals Start With Low Mortgage Rates

For today's U.S. home buyers and refinance household, mortgage approval times are running longer than typical. The extra time leaves more opportunity for "things to go wrong" -- especially as low mortgage rates lead to underwriting backlogs nationwide.

Don't let your mortgage get un-approved. Get today's low mortgage rates and follow steps to protect it. Personalized mortgage rates are available online for free, with no obligation whatsoever.

Click here to see today's low mortgage rates.

Contact The Mortgage Mark with any Questions!

mark@themortgagemark.com

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Simple Mortgage Definitions : Loan-To-Value (LTV)

Simple Definition : Loan-To-Value (LTV)

In the world of mortgages, Loan-to-Value (LTV) is the amount of money you're borrowing as a percentage of your home's value.

Lenders use loan-to-value calculations on both purchase and refinance transactions. The math to determine your LTV may vary based on loan purpose, however.  

With a refinance, the LTV is equal to your loan size divided by your home's appraised value. For a purchase, LTV is based on the sales price of the home, unless the home appraises for less than its purchase price. When this happens, your home's LTV is based on the lower purchase price -- not the appraised value. 

Here are four simple examples to illustrate the concept of loan-to-value :

Buying a Home which appraises for more than its Purchase Price

• House price: $100,000
• Appraised value : $110,000
• Downpayment: $20,000
• Loan amount: $80,000
• Loan-to-value (LTV) : 80%

Buying a Home which appraises for less than its Purchase Price

• House price: $100,000
• Appraised value : $90,000
• Downpayment: $20,000
• Loan amount: $80,000
• Loan-to-value (LTV) : 89%

Refinancing a Home with no Second Mortgage

• Home value: $100,000
• Loan balance: $80,000
• Equity: $20,000
• Loan-to-value or LTV: 80%

Refinancing a Home with a Second Mortgage

• Home value: $100,000
• Loan balance: $80,000
• Second loan balance : $10,000
• Equity: $10,000
• Loan-to-value or LTV: 90%

Whether you're buying or refinancing, though, your loan's loan-to-value is important because it helps to determine your mortgage rate and your loan eligibility.

High LTV Loans For Home Buyers

Loan-to-value is a key factor in your ability to get approved for a mortgage. In general, lenders prefer loans with low LTV because loans with low LTV represent less risk to the bank. 

That said, there are a number of loan programs specifically geared toward homeowners with high LTVs. There are even some programs which ignore loan-to-value altogether.

Here is a brief review of the more common high-LTV loan types.

VA Loan : Up to 100% LTV allowed

VA loans are loans guaranteed by the U.S. Department of Veterans Affairs. VA loan guidelines allow for 100% LTV, which means that no downpayment is required for an VA loan. VA mortgages are available to certain active-duty military servicepersons, veterans, military spouses, members of the Selected Reserve or National Guard, cadets at the U.S. Military, Air Force or Coast Guard Academy members, midshipman at the U.S. Naval Academy, World War II merchant seamen, U.S. Public Health Service officers and National Oceanic & Atmospheric Administration officers, among other groups.

USDA Loan : Up to 100% LTV allowed

USDA loans are loans insured by the U.S. Department of Agriculture. USDA loans allow for 100% LTV -- there is no downpayment required. USDA loans are sometimes known as Rural Housing Loans but it's a misnomer, of sorts. USDA loans are available in rural parts of the country, but they're available to many suburban homeowners, too. 

Conventional 97 : Up to 97% LTV allowed

Fannie Mae offers a special mortgage for homeowners with above-average credit scores called the Conventional 97. Via the Conventional 97 program, home buyers can make a downpayment of just 3 percent with access to below-average mortgage insurance rates. The program also allows for cash downpayment gifts. 

FHA Loan : Up to 96.5% LTV allowed

FHA loans are loans insured by the Federal Housing Administration, an agency within the U.S. Department of Housing and Urban Development (HUD). FHA mortgage guidelines require a downpayment of at least 3.5 percent. Unlike VA and USDA loans, FHA loans are not limited by military background or location -- there are no special eligibility requirements. FHA loans can be an especially good fit for home buyers with less-than-perfect credit scores, or for loan sizes over $625,500.

Conventional Loan : Up to 95% LTV allowed

Conventional loans are loans guaranteed by Fannie Mae or Freddie Mac. Both groups offer 95% LTV purchase mortgages, which means you will need to make a downpayment of 5 percent to qualify. 95% loans are available via most mortgage lenders, and private mortgage insurance (PMI) is often required. As compared to an FHA loan, conventional loans to 95 percent LTV are advised for homeowners with high credit scores only. In most other cases, FHA loans are preferred.

High LTV Loans For Refinancing Households

High-LTV mortgages are simpler for refinance transactions as compared for purchase ones. Multiple federal agencies make "no appraisal" refinance programs available to U.S. homeowners which means that loan-to-value is a non-factor for eligibility.

A few of those programs are highlighted below. 

The HARP 2.0 Program

The Home Affordable Refinance Program (HARP) was first launched late last decade. Also known as "The Obama Refi", HARP is available to homeowners with existing mortgages backed by Fannie Mae or Freddie Mac. HARP was revamped in 2011 as "HARP 2.0" and the latest iteration allows for unlimited LTV. No matter how little equity you have in your home, you can be HARP-eligible. 

FHA Streamline Refinance

The FHA Streamline Refinance is a special refinance program made available to homeowners with existing FHA mortgages. Official guidelines for the FHA Streamline Refinance waive appraisal requirements, which means that loans with unlimited LTV are allowed. Guidelines also state that income, employment and credit are not required to be verified. VA Streamline Refinance

The VA Streamline Refinance is a special refinance program for homeowners with existing VA home loans. The official name of the VA Streamline Refinance is the Interest Rate Reduction Refinance Loan (IRRRL). It's sometimes called the VA-to-VA loan. Similar to its FHA cousin, the VA Streamline Refinance does not require an appraisal, nor does it require the verification of income, employment or credit.

USDA Streamline Refinance

The USDA Streamline Refinance is available to homeowners with existing USDA mortgages only. Like the FHA and VA streamline programs, the USDA refinance waives the need for a home appraisal. The program is currently in pilot phase, and available in 19 states. 

What Is Your Maximum Loan-to-Value?

Loan-to-value is the ratio of how much you're borrowing to home much your home is worth. It's a simple formula but the basis for most mortgage lending. If you can grasp how LTV works, you can better pick the mortgage that suits your needs best.

To see what kind of mortgage rates you can get with your current LTV, use this rate quote form. Rates are available 24/7 online, and they're free.

Contact The Mortgage Mark with any questions!!

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When You Sell Your Home With FHA Financing, Buyers Can “Assume” Your Mortgage And Its Interest Rate

As the U.S. housing market recovers from last decade's downturn, today's home buyers aren't always flush with cash. For buyers with few funds for downpayment, loans via the Federal Housing Administration remain popular.

The FHA allows loans with as little as 3.5% down.

Click here to skip to today's FHA mortgage rates.

About The FHA Mortgage

The Federal Housing Administration (FHA) was established in 1934, a period of "heavy renting". The U.S. was emerging from The Great Depression. Just 4 in 10 households owned their homes.

At the time, mortgage terms were onerous. To get a loan meant to make a 50% downpayment; to agree to a loan term of 5 years or fewer; and, to make a "balloon" payment to the bank after the mortgage's first few years.

Few people could meet these terms so the FHA spawned a new method of finance.

Via its Mortgage Insurance Premium (MIP) program, the FHA created a self-sufficient insurance fund through which mortgage lenders could be "paid back" in the event of a loan default.

The FHA created a series of rules known as the FHA mortgage guidelines. The group agreed to provide to FHA-approved lenders insurance for all loans meeting the minimum standards as set forth by the guidelines.

The FHA MIP system gave banks confidence to make better loans with better terms for U.S. home buyers. Nationally, downpayment requirements dropped, loan terms lengthened, and mortgage rates were made affordable. Homeownership rates climbed.

Today, more than 80 years after its creating, the FHA remains as the only federal agency which has never taken even a dollar from U.S. taxpayers. The FHA is entirely self-sufficient.

Click here to skip to today's FHA mortgage rates.

U.S. Home Buyers Choose FHA Loans

In today's expanding economy, U.S. home buyers have mortgage loan options.

Conventional loans are available via Fannie Mae and Freddie Mac; Rural Housing Loans are available via the USDA; 100% loans are available via the Department of Veterans Affairs and its VA loan. Even jumbo mortgages and private loans have made a comeback.

However, the FHA loan remains in high demand. It's combination of low rates, low downpayment, and flexible guidelines has made it one of most common loan choices for home buyers today.

There are benefits to choosing an FHA loan. Here are some of the biggest.

FHA Mortgage Insurance Premiums

It may seem odd to call FHA mortgage insurance a benefit since it doesn't come free, however, FHA MIP is what makes the program possible. Without the MIP, FHA-approved lenders would have little reason to make FHA-insured loans. However, as a homeowner or home buyer, you have ways to limits your FHA MIP costs. You can use a 15-year mortgage term, for example; or make a downpayment of at least 5 percent. As a bonus perk, FHA-backed homeowners with loans from before June 2009 get access to special reduced MIP rates. Get today's rates to see the reduced MIP.

FHA Allows A 3.5% Downpayment

For today's home buyers, there are only a few mortgage options which allow for downpayments of five percent or less. The FHA is one of them. With an FHA mortgage, you can make a downpayment as small as 3.5%. This benefits home buyers who don't have a lot of money saved up for downpayment; and, home buyers who would rather save money for moving costs, emergency funds, or other needs.

FHA Allows 100% Gift Funds

The FHA is aggressive with respect to gifts for downpayment. Very few loans programs will allow your entire downpayment for a home to come from a gift. The FHA will. Via the FHA, your entire 3.5% downpayment can be a gift from parents or another relative, an employer, an approved charitable group, or a government homebuyer program. If you're using a downpayment gift, though, you'll need to follow the process. Click here for a mortgage rate and to request an FHA gift letter.

The FHA Doesn't Require A SSN

Not every home buyer will have a valid social security number and, according to the FHA, that's okay. FHA guidelines permits loans to employees of the World Bank and foreign embassies, for example. The FHA will also insure loans for non-permanent resident aliens.

There Are Many FHA-Approved Lenders

FHA loans can be funded by any FHA-approved lender. This includes mortgage lender, savings-and-loans institutions, and credit unions. The marketplace for FHA loans is giant, which creates competitive pressure among lenders to offer low FHA rates and low FHA fees. It pays to "shop around" on an FHA loan. Furthermore, because different banks use different methods to underwrite, your FHA loan can be declined by Bank A but approved by Bank B. If you meet the rules of the FHA, you can apply until your loan get approved! Click here to get some of today's low FHA rates.

There Are Many FHA Loan Products

Via the FHA, you can get a mortgage of almost any type. The agency is best-known for its traditional 30-year fixed-rate mortgage, but the FHA also offers a 15-year fixed rate loan as well as a series of adjustable-rate mortgages (ARMs). In addition, the FHA insures purchase-and-improvement loans for when you want to buy a home that needs repairs; 203k construction loans for when you want to buy a home that's newly built; and energy-efficiency loans for when you want to finance the costs of energy-efficiency improvements into your loan. The FHA also provides a full line of FHA refinance products.

The FHA Insures All Property Types

FHA home buyers are able to purchase any home type in any U.S. neighborhood -- whether in the 50 United States, the District of Columbia, or any U.S. territory. The FHA will insure single-family detached homes, 2-unit homes, 3-unit homes, 4-unit homes, condominiums, mobile homes and manufactured homes.

The FHA Has Flexible Credit Standards

Of all the available loan types in today's U.S. market, FHA loans are among the most forgiving with respect to credit standards. The FHA does not require "perfect credit" and even instructs its approved lenders to look beyond isolated "credit events" and to consider a borrower's complete credit history. Even borrowers with a recent foreclosure, short sale, deed-in-lieu or bankruptcy can be eligible for FHA financing. Mandatory 3-year waiting periods do not exist with an FHA loan.

The FHA Allows Larger Loan Sizes

A "loan limit" is the maximum allowable loan size for an area and, as another FHA benefit,FHA loan limits are much higher than conventional loan limits in many parts of the country. In Orange County, California, for example, or New York City, the FHA will insure up to $729,750. By contrast, conventional loans stop at $625,500. For 2-unit, 3-unit and 4-unit homes, FHA loan limits are even higher -- ranging up to $1,403,400.

FHA Loans Are Assumable

A little-known FHA benefit is that the agency will allow a home buyer to "assume" the existing FHA mortgage on home being purchased. The buyer must still qualify for the mortgage with its existing terms but, in a rising mortgage rate environment, it can be attractive to assume a home seller's loan. 5 years from now, for example, a buyer of an FHA-insured home can "inherit" a seller's sub-4 percent mortgage rate.

How Much FHA Loan Can You Afford?

The FHA mortgage program accounts for a significant share of U.S. home buyer loan activity and, during the first three month of 2013, the typical FHA loan averaged 94% loan-to-value. The program is in high demand among low-equity homeowners and buyers.

See what an FHA loan can do for you. Get today's interest rates. Find out how much home you can afford .

Click here for today's FHA mortgage rates.

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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