Tag: upside down

HARP 2.0 – IS IT FINALLY HERE?

HARP 2.0 – IS IT FINALLY HERE?

In November 2011, President Obama announced the existence of a HARP 2.0 product that was going to help more and more underwater home owners refinance into a lower interest rate loan. 

The release date was supposed to be in December 2011, but unfortunately no lenders would offer it.  Finally lenders will start offering this product..  I can offer Freddie Mac Harp 2.0 loans on Monday March 12th, and Fannie Mae Harp 2.0 loans on Monday, March 19th.  Here are the main details of HARP 2.0: 

HARP 2.0:

1.)  You must be in a FANNIE MAE or FREDDIE MAC loan taken out before May of 2009.  You can check if you are here:

FANNIE MAE: http://www.fanniemae.com/loanlookup/

or

FREDDIE MAC: https://ww3.freddiemac.com/corporate/

2.)  The LTV allowable was originally announced as unlimited, but it appears lenders are afraid to offer that at this point.  I don’t have all the details yet, but I think the Loan to Value limit will either be 150% or 125%, and unlimited combined loan to value when subordinating a second.  HARP 2.0 is only for 1st Mortgages. 

3.)  Most HARP 2.0 loans will not need an appraisal.

4.)  Allows 1 30 day late in the past 12 months – as long as it is not within the most recent 6 months.

5.)  Before, you had to have the same occupancy as when you took out the original loan.  This has now been lifted.  For example, you could not complete a HARP loan on an original primary residence that is now a rental.  Now you can.

6.)  Fannie Mae is removing the waiting periods for short sales and foreclosures for this product.

This program will help the underwater homeowners that have stayed in their home and maintained their payment, to lower their interest rate to the current market levels.  This is a great product, and I think this is a step in the right direction for our industry.

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HARP 2.0 – Is it Finally Here?

30 YEAR FIXED AT 3.75% / WHAT DOES THE U.S. 25 BILLION BANK SETTLEMENT MEAN TO ME?

TODAY’S MORTGAGE RATES: 

February 13th, 2012

The MBS Market closed last week trading down (- 31 bps).   Mortgage rates haven’t seen much positive momentum since they hit their all time lows 2 weeks ago.  Pricing has slowly risen since then, as is typical when a very low rate/pricing is reached. The lowest rate pricing usually only lasts for a couple of days.  Rate shoppers and borrowers not ready to lock quickly will usually miss locking in at the best pricing. 

This is another week that should be relatively calm.

Below are rates available today paying a point or less:

30 year fixed: 3.75% paying .95 points, 4% paying 0 points

20 year fixed: 3.5% paying 1 point, 3.875% paying 0 points

15 year fixed: 3% paying .89 points, 3.375% paying 0 points

5/1 ARM: 2.625% paying 1 point, 3.125% paying 0 points

7/1 ARM: 3% paying .71 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4% paying .78 points, 4.25% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 2.875% paying .61 points, 3.125% paying 0 points

30 year fixed VA: 3.75% paying 0 points


THE U.S. 25 BILLION BANK SETTLEMENT – WHAT DOES IT MEAN FOR ME?

Last week, The US and 5 major US banks reached a 25 billion settlement meant to help homeowners who are delinquent or pose a threat to go delinquent.  The deal is the result of the major banks settling to help make right some illegal/unethical processes that took place in many loans written during the boom. 

So who will this settlement help?

The reality is that the 25 billion dollar settlement will help very few homeowners.  There are an estimated 11 million homeowners in the country that are upside down on their mortgage and another 6 million currently behind on their payment or facing foreclosure.  The Obama administration estimates this could help 1 million homeowners.  I remain skeptical, especially with the multitude of other failed bills meant to help the housing market.

Here is how it works – the Major Banks:

  • BANK OF AMERICA
  • WELLS FARGO
  • CITI GROUP
  • CHASE
  • ALLY FINANCIAL (FORMERLY GMAC)

Will put money aside to help delinquent or risk to go delinquent borrowers lower their payments, possibly reduce their principal, and get into payment plans to help customers become current on their delinquent mortgage.

The only borrowers eligible will be serviced by the above 5 banks.  If you are not, you are not eligible.  You are also not eligible if you are currently in a FANNIE MAE or FREDDIE MAC backed mortgage – the government agencies that back the majority of the mortgage in the country.

In all likelihood, the plan will not actually start for another 10-12 months. Eligible homeowners will be contacted by their servicer. 

So in conclusion – you will most likely not be eligible unless:

1.)     You are substantially upside down.  I talk to homeowners all the time that want to take advantage of government programs but have equity in their home and also have good credit and income.  If you could qualify for a refinance, you are not likely to ever qualify for these programs.

2.)    You are currently late or in danger of going late – typically homeowners that are upside down.

3.)    You current loan is with Bank of America, Wells Fargo, GMAC (Ally), Citigroup, or Chase.

4.)    Your loan is NOT backed by Fannie Mae or Freddie Mac.

5.)     This settlement will likely only apply to 1st Mortgages – not to 1st and 2nd’s if you have 2 mortgages. 

A small portion of American homeowners will benefit from this settlement, but the vast majority will have to go by existing refinance guidelines to change their current loan.

 

Today’s Mortgage Interest Rates.  Current Mortgage Interest Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rate Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, HARP 2.0 mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

30 Year Fixed at 3.75% / What does the U.S. 25 billion bank settlement mean to me?

LOWEST MORTGAGE RATES EVER!! – OBAMA’S MASS REFINANCING PROGRAM

LOWEST MORTGAGE RATES EVER!!

January 9th, 2012

The MBS Market closed last week trading up (+ 25bps).  This was another great week for interest rates that saw fixed rates reach their LOWEST LEVELS EVER!!  In the history of the mortgage industry, borrowers have never been able to get better mortgage pricing than they can now.  It’s a pretty good time to be doing a mortgage. 

Rates might have dropped even lower if Congress did not pass HR3630.

I mentioned HR3630 in previous updates.  Congress is charging increased fees to homeowners to extend the employment taxes.  This comes in the form of Fannie Mae increasing guaranteed pricing to lenders which have to pass that on to borrowers.  This change goes into effect on loans delivered to Fannie Mae after February 10th.  Since most lenders lock on 30 day locks – this change will go into effect with almost every lender by the end of the week. 

This means that mortgage rate pricing should go up approximately .3 pts on every rate or .125% higher on the rate for the same costs.      

This can be offset if the MBS market continues to trade higher, but the market has trended up for almost 2 months – it will turn eventually. 

Below are rates available today paying a point or less:

30 year fixed: 3.75% paying .99 points, 4% paying 0 points

20 year fixed: 3.75% paying .1 points, 3.875% paying 0 points

15 year fixed: 3.125% paying .85 points, 3.25% paying 0 points

5/1 ARM: 2.5% paying .92 points, 2.875% paying 0 points

7/1 ARM: 2.875% paying .95 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4% paying 1 point, 4.375% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 3.25% paying .0 points

30 year fixed VA: 3.75% paying 0 points


OBAMA’S MASS REFINANCING PROGRAM

There is a lot of chatter that a Mass Refinance Program could be released by President Obama before the elections.

The chatter centers around the possibility of President Obama replacing the current FHFA director with one of his own.  This would allow the President to implement his own guidelines for FANNIE MAE, FREDDIE MAC, FHA and VA.

The plan is said to allow borrowers to refinance their current loans to today’s low rates without:

AN APPRAISAL OR LTV REQUIREMENTS

CREDIT REQUIREMENTS OUTSIDE OF MORTGAGE HISTORY

INCOME REQUIREMENTS

ASSET REQUIREMENTS

The main requirement would be that the borrower has to be current on their existing mortgage for the past 3 months.  This is only for rate and term refinancing – no cash out.  This is also only for first mortgages – not combining a 1st and 2nd. 

So this basically takes out the main things blocking a lot of people from refinancing.  If this plan is implemented, we could see mass refinancing across the nation.  Now keep in mind this plan is meant for people that CAN NOT refinance with the current guidelines.  For example, if you have a lot of equity, good credit, and qualifying income – this plan is not going to offer you anything that is not currently on the market.

This plan is meant to help people that are upside down, low equity, bad credit, can’t prove their income, etc.

Watch for more updates on if this plan comes to fruition.  This should be very interesting to say the least. 

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, HARP 2.0 mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

Lowest Mortgage Rates Ever – Obama’s Mass Refinancing Program

MORTGAGE PRICING IMPROVES ; HARP 2.0 UPDATE

MORTGAGE RATES IMPROVE:

December 5th, 2011

Fixed Mortgage rates improved slightly last week with the bond market closing + 53 bps.  ARM pricing has started to creep a bit higher lately.  ARM loans are less tied to the bond market than fixed loans are. 

There is not too much data coming into the markets this week.  The leaders in Europe are meeting on Friday to continue debt talks, but I don’t expect too much to come of that.

I still feel that the long term outlook is that mortgage rates will start to rise slowly in the coming weeks and months. 

Below are rates available today paying a point or less:

30 year fixed: 3.875% paying .653 point, 4.125% paying 0 points

20 year fixed: 3.75% paying .935 points, 4% paying 0 points

15 year fixed: 3.25% paying .725 points, 3.5% paying 0 points

5/1 ARM: 2.5% paying .97 points; 2.875% paying 0 points

7/1 ARM: 2.875% paying .883 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4.25% paying .817 points, 4.5% paying 0 points

30 year fixed FHA: 3.75% paying .605 points, 3.99% paying 0 points

15 year fixed FHA: 3.25% paying .867 points, 3.5% paying 0 points

30 year fixed VA: 3.75% paying 0 points

HARP 2.0 UPDATE

When dealing with a new agency product, typically the big lenders announce when they are coming out and everybody falls in line.  The only lender I know of that has publicized HARP 2.0 updates is Wells Fargo.  They are releasing their HARP 2.0 rate sheets next week but are not offering the product for underwriting.

Many direct lenders have lines of credit from bigger banks to fund their loans.  Wells Fargo is an investor in my company as well as many, many other lenders.  Thus we will get it at the same time.

It is now starting to appear that the HARP 2.0 product may not make it to the market for some time.  As always, I will keep you updated on any new developments.    

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

MORTGAGE PRICING IMPROVES ; HARP 2.0 UPDATE

TODAY’S MORTGAGE RATES , HARP 2.0 GUIDELINES RELEASED

TODAY’S MORTGAGE RATES:

November 21st, 2011

The bond market closed another see-saw type week with trading ending at + 6 bps on the week.  Mortgage interest rate pricing has basically stayed the same and I expect more of the same results this week.  Although this is a work shortened week in America, Europe and Asia are business as usual.  There are not any major reports or events on the horizon this week that should raise or lower rates too much.

Have a happy and safe Thanksgiving with your family!!

Below are rates available paying a point or less: 

30 year fixed: 3.875% paying 1 point,  4.125% paying 0 points

20 year fixed: 3.875% paying .53 point, 4% paying 0 points

15 year fixed: 3.25% paying .85 points, 3.625% paying 0 points

5/1 ARM: 2.5% paying .78 points; 2.75% paying 0 points

7/1 ARM: 2.875% paying .92 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4.25% paying 1 point, 4.5% paying 0 points

30 year fixed FHA: 3.75% paying .54 points, 3.99% paying 0 points

15 year fixed FHA: 3.375% paying .66 points, 3.625% paying 0 points

30 year fixed VA: 3.75% paying 0 points


—

HARP 2.0 – WHO IS ELLIGIBLE?

HARP 2.0 is now only two weeks away.  The new guidelines were released this week and below are the MAIN changes. 

REMINDER:  A HARP loan is a product that allows homeowners backed by a Fannie Mae or Freddie Mac loan the ability to refinance their loan at up to 125% of the value with no mortgage insurance as long as they don’t have it currently.  The original loan must have been delivered to Fannie Mae or Freddie Mac by May of 2009.  Below are changes that will allow more homeowners to take advantage of this product.

HARP 2.0:

1.)  Starts with applications dated December 1st or later.

2.)  The biggest change – removing the 125% barrier for fixed loans.  There is an unlimited LTV for fixed loans and a max 105% LTV for ARM loans and loans with terms over 30 years.

3.)  Another biggie – eliminates the need for an appraisal or automated valuation model to complete the loan.

4.)  Allows 1 30 day late in the past 12 months – as long as it is not within the most recent 6 months.

5.)  Before, you had to have the same occupancy as when you took out the original loan.  This has now been lifted.  For example, you could not complete a HARP loan on an original primary residence that is now a rental.  Now you can.

6.)  Fannie Mae is removing the waiting periods for short sales and foreclosures for this product.

This program will help the underwater homeowners that have stayed in their home and maintained their payment, to lower their interest rate to the current market levels.  This is a great product, and I think this is a step in the right direction for our industry.

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HAVE A GREAT THANKSGIVING!!

 

 

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

TODAY’S MORTGAGE RATES, HARP 2.0 GUIDELINES RELEASE

 

(HARP) HOME OWNER AFFORDABILITY REFINANCE PROGRAM – UPDATED TO HELP MORE UNDERWATER HOMEOWNERS

NEW GOVERNMENT REFINANCE PROGRAM:

When the government released the Homeowner Affordability Refinance Program (HARP) product two years ago, they envisioned helping 4 million homeowners get into a better mortgage. As of August, only 894,000 people were able to utilize the HARP product to get into a better mortgage.

The basics of the current HARP product allow homeowners in a FANNIE MAE or FREDDIE MAC loan to refinance their current loan at up to 125% Loan to value (though most lenders only do 105% LTV). The original loan had to be taken out before March of 2009. This product was meant to help homeowners with little or no equity refinance their current loan with at a lower rate with no mortgage insurance.

President Obama is scheduled to release revisions to the HARP program this week. The new program is said to uncap the max loan to value of 125%. The new HARP loan will allow more under water homeowners to refinance their current loan at a lower rate with no mortgage insurance.

Many consumers owe much more than 125% of their home’s value. The updated HARP product is meant to help the homeowner’s that the first HARP product could not.

Check below to see if your current loan is backed by FANNIE MAE or FREDDIE MAC. 

FANNIE MAE check: http://www.fanniemae.com/loanlookup/

FREDDIE MAC check: https://ww3.freddiemac.com/corporate/

(HARP) HOME OWNER AFFORDABILITY REFINANCE PROGRAM – UPDATED TO HELP MORE UNDERWATER HOMEOWNERS

AUGUST 2011 – PHOENIX, ARIZONA’S HOUSING NUMBERS:

October 10th, 2011

PHOENIX, ARIZONA’S AUGUST HOUSING NUMBERS:

This summer was a record summer for Single Family Residence leases. There were 6,892 single family leases signed compared to 5,664 in the summer of 2010. The numbers reflect the increasing amount of potential homeowners that can not buy due to foreclosures or short sales on their credit. 

Hopefully something is done to lower the amount of time needed to elapse to qualify for a new loan after a foreclosure or short sale. There are a very large number of possible home owners that  have these on their records due to the large drop in home prices.  If the credit requirements do not change, we will continue to see Arizona residents in leases that would typically own a home.

Even though leases are up,   sold inventory continues to post impressive numbers. 8,817 sales were recorded in Maricopa County in August of 2011. This compared to 7,358 for August of 2010. Median home prices are still slightly down compared to this time last year.

Overall, August was a great month for the Arizona housing industry. The more sales we have, the more the industry is turning over the vast amounts of REO and short sale homes on the market. These need to sell and we need to move to a more traditional market for the prices to rise again.

August 2011, Phoenix, Arizona Housing Numbers

ARIZONA HOUSING STATISTICS – BREAKING RECORDS!!

ARIZONA HOUSING  STATISTICS  :  BREAKING RECORDS!!

June was a record month for Arizona housing.  10,868 home sales occurred in June of 2011, surpassing the previous record of 10,252 units sold in June of 2005.

June was also a record month for home leases of Single Family Residences.  2,280 new leases were executed last month, beating the previous record of 2,002 leases in July of 2008.

Typically home sales and leases go in the opposite direction, but with all the short sales and foreclosures occurring – there are a lot of people changing residences. 

Arizona short sales also set a record, contributing to 2,734 sold units – up 33% from May.

We are still very much in a market fueled by investors.  41% of Single Family Residences sales were purchased in cash.  29% with conforming loans, 24% with FHA loans, 4% with VA loans, and 2% with others.

Lastly, the median home price in Arizona increased in June to 111,000 from 109,000 in May. 

(Arizona Housing statistics – breaking records – from Reggie Green @ Crossline Capital)

Licensed in Arizona, California and Colorado.

MORTGAGE RATES BACK TO LOWEST LEVELS OF THE YEAR – 6/27/11

MORTGAGE RATES BACK TO LOWEST LEVELS OF THE YEAR:  The bond market closed the week 56 bps higher – pushing rates back to the lowest levels of the year.  This ended 2.5 weeks of the bond market going down, pressuring rates higher.

30 year fixed rates are now back to 4.375% with a portion of a point.  20 year fixed loans are back to 4.25%.  5/1 ARMS are down to 2.875%.

We are now in the last week of the FED purchasing mortgage backed securities program – QEII.  The market will now determine interest rates without the FED manipulating demand.

6/20/11 – Mortgage Rates Rise for 2nd straight week / The Foreclosure Statistics

MORTGAGE RATES RISE FOR 2nd STRAIGHT WEEK:  The Bond market finished slightly down on the week – ending 6 bps lower.  This pushed rates slightly higher on the week.  You can still get a 4.375% on a 30 year fixed rate, but it will cost over a point.  4.49% is the par rate paying less than one point.

Overall, there is some pressure on mortgage rates right now.  The Feds Quantitative Easing measures are about to end, which could push rates a bit higher.  Overall, I don’t see rates going much higher or much lower from where they are right now for the foreseeable future. 

 

THE FORECLOSURE NUMBERS:   According to the US Foreclosure Market Report, foreclosure activity has decreased for the 8th straight month.

There are 3 foreclosure activities they consider in their report.  Notice of Default is when the mortgage company notifies the customer that they are in violation of their contract and they plan on foreclosing unless payments are brought back up to speed.  This can be given out after 3 months of late payments.  Foreclosures scheduled is when a home is scheduled to be taken back by the bank.  REO is when the bank takes back the home and it becomes part of the banks inventory.

From April to May:

Notice of Default rates went down by 7%

Foreclosures Scheduled went up by 3%

REOs went down by 4% 

Although the foreclosure activity has decreased, the results can be misleading.  Many lenders are delaying foreclosure proceedings for various reasons associated with their own process and procedures as well as market considerations in the area where the homes are being foreclosed in.  If they keep pumping more REOs into the market when their current inventory is high, it will push down the values of their existing inventory.

Also, even though the inventory of homes in the foreclosure process has decreased steadily over the past 6 months, the inventory of REOs is increasing.  This is because the amount of REOs being added to the market is outpacing the amount of REOs sold.  This points to a still struggling housing market where the demand is not on par with the supply. 

The states with the highest foreclosure rates in order are Nevada, Arizona, California, Michigan and Georgia.