Archive for February 3rd, 2012

Is your mortgage higher than the value of your home?  Have you unsuccessfully tried to modify your home loan?  There’s a new solution you should know about.  This is a fantastic option if you have not been late on your mortgage during the past 6 months.  I found this information through my favorite credit union, Patelco.  They will take great care of you.  I know first-hand because I’ve done business with them for over 10 years!

Home Affordable Refinance Program (HARP)

What is HARP?

The Home Affordable Refinance Program is a program that provides homeowners with loans owned or guaranteed by Fannie Mae an opportunity to refinance into more affordable monthly payments. This program is designed to assist homeowners in refinancing their mortgages-even if they owe more than the home’s current value.

Why refinance under HARP?

• Receive lower rates even if you have little equity in your home
• Reduce monthly mortgage payments when you refinance to a lower rate
• Save on interest over the life of your loan when you refinance to a reduced term
• No mortgage insurance is required on your new loan if none is in place on current mortgage
• No property appraisal required in some situations

How do I know if I qualify for a HARP refinance with Patelco Credit Union?

To qualify for a HARP refinance, an individual’s loan must meet the following conditions:

• Owned or guaranteed by Fannie Mae,
• Have been sold to Fannie Mae before June 1, 2009,
• Have no late payments within the last 6 months, and no more than one in the last 12 months.

How do I find out if my loan is owned or guaranteed by Fannie Mae?

There are two convenient ways to find out if your loan is owned or guaranteed by Fannie Mae:

• Members can visit www.fanniemae.com/loanlookup/
• Or call 800-7-Fannie

Does Patelco do HARP loans?

Patelco does refinance HARP loans if they are owned by Fannie Mae. We can work with you to refinance any qualifying Fannie Mae loan from any lender, as long as the loan does not currently have Mortgage Insurance (MI) obtained through another lender. Loans with current MI must go back to the current lender. If you have a qualified Patelco loan with MI, we can work with you.

Are there fees associated with a HARP loan?

All standard fees may apply, (Patelco, Title etc) but there are no special additional fees assessed through the program. Some costs may be waived if Fannie Mae deems it so through the approval process.

What types of products can you offer in a HARP refinance?

Loans refinanced under the HARP program must be done as a 20 or 30 year fixed rate term. 15 Year terms will be offered by Fannie Mae in June 2012.

What if my LTV exceeds 125%, can I get a HARP refinance?

Don’t, worry you may qualify for the following new products that are scheduled to roll out in early 2012.

• 30–year Fixed Rate, Refi plus LTV >125% – available early February 2012
• 15–year Fixed Rate, Refi Plus LTV> 125 – available June 1, 2012
• 15–year Fixed Rate, Refi Plus 105.01 thru 125% available June 1, 2012

Who do I call if I have more questions?

For help, please call one of our Home Loan experts at 800.358.8228 (option 2, then option 1).