e
HARP, the Home Affordable Refinance Program, offers homeowners the opportunity to refinance to a better mortgage without the complications and usual guidelines that are a part of traditional refinances. While accommodating underwater homeowners, using HARP loans to move to a stable product is the ultimate intention of the program.
HARP loans are available for homeowners who are underwater which means that they owe more on the mortgage than the value of the home. The program is available for loans that were sold to Fannie Mae and Freddie Mac prior to June 1, 2009. In most cases, HARP refinances do not require an appraisal regardless of loan to value since LTV caps were eliminated in order to open the program up to a larger amount of underwater homeowners.
By offering the HARP program, it is expected that the homeowner will move to a more stable product. A more stable product includes moving from a mortgage with an interest only feature to a mortgage product that is fully amortizing which allows the accumulation of equity in the property. Another move to a stable product would be a homeowner moving from an adjustable rate mortgage to a fixed rate mortgage which would eliminate the uncertainty of future mortgage payments or payment shock. In some cases, moving from an adjustable rate mortgage to another ARM with an initial fixed period of five years or move, and equal to or greater than the existing mortgage would be considered a move to a stable product because it eliminates a pending payment shock. Payment shock occurs when the adjustable rate mortgage comes up for adjustment and the interest rate increases which is a major risk factor associated with ARMs.
Many homeowners have moved to a more stable product just by refinancing a 30 year mortgage to a 15 year mortgage through HARP 2.0. This accelerated the amortization of principal and builds equity at a faster pace. While moving to a longer term mortgage is not considered moving to a more stable product, it is permitted provided that the borrower realizes a reduction in the monthly mortgage payment amount or a reduction in the interest rate.
Congrats to Rick Zegar for being Neighborhood Loans TOP Producer for the month of February. Great job, Rick!
Dont forget this Sunday at 2:00 a.m.
Come join Jorge Flores and Mike LaFido Thursday March, 7th from 11:30AM-1:30PM for a Broker Open. Lunch will be provided.
Congratulations to Joe Saccomonto for being the Top Loan Officer of the month!
Happy Thanksgiving!
Happy Halloween from your friends at Neighborhood Loans!!
Congratulations to Tom Flemm for being Neighborhood Loans TOP LOAN OFFICER for the month of July! Keep up the great job, Tom!!
Neighborhood Loans is seeking an experienced loan processor. 3 years experience is required. Very lucrative salary and bonus structure. Benefits included. Position is full time. Earn up to 80k/year!!
www.neighborhoodloans.com
630.246.4777
Congratulations to Jorge Flores for being Neighborhood Loans Top Loan Officer for the month of March! Good Job Jorge!!
Congratulations to Bob Sztapka for being Neighborhood Loans Top Loan Officer for the month of March! Good Job Bob!!
Our new office is so pretty
Neighborhood Loans new office opening up April 1st!!
Another happy Neighborhood Loans client! Great Job!!
Another happy Neighborhood Loans client! Great Job!
Another happy Neighborhood Loans client! Great Job!
Buy a Home with as little as 3% Down Payment and NO PMI! Call Neighborhood Loans Today! www.NeighborhoodLoans.com
Check out Neighborhood Loans VA Loan Program! Buy a home with 0% DOWN! Call Today or visit us at NeighborhoodLoans.com
Happy Holidays from Neighborhood Loans!
Super Agent Summit
ATTENTION LOAN OFFICERS!! Are you looking for a change? Neighborhood Loans offers 5 LIVE Leads to your desk per day! Call Today! 630-246-4120
