Pennsylvania Mortgage News: May 2012

your guide to the Pennsylvania Mortgage Market * Programs * Rates * Information *

HARP is available for Freddie Mac Mortgages

 

Freddie Mac and HARP

 

The Home Affordable Refinance Program, commonly known as HARP is available for Freddie Mac mortgages too. 

 

When the HARP 2.0 program rolled out at the end of 2011, it offered holders of Conventional Mortgages the opportunity to refinance their homes and take advantage of low interest rates even if the value of their home had dropped.  Conventional mortgages are made up of mortgages that are backed either by Fannie Mae or Freddie Mac.

 

Remember: Even if you make your mortgage payments to a particular bank or mortgage lender, if you have a Conventional Mortgage, you probably have a mortgage that is owned or back by Fannie Mae or Freddie Mac.

 

Unfortunately, many lenders chose to only focus on the Fannie Mae portion of the HARP program.  The Fannie Mae portion, known as DU Refi Plus has been more widely available because more lenders deal with Fannie Mae compared to Freddie Mac.  Fannie Mae typically has at least a 50% larger market share than Freddie Mac.  Borrowers who have Freddie Mac owned mortgages have sometimes had trouble taking advantage of the benefits of HARP due to a lack of lenders offering this version of the program.

 

The good news for borrowers with Freddie Mac owned mortgages is that the HARP program IS available for them too.

 

The Freddie Mac portion of HARP is known as Open Access.  The Open Access Program has the same benefits as the Fannie Mae DU Refi Plus program and also allows homeowners the benefit of refinancing their home even if the value of the home has fallen.

 

 

 

 

           Overview of the HARP Freddie Mac Open Access Program….

 

  • Only for mortgages currently owned or backed by Freddie Mac

Check here to see if you have a Freddie Mac mortgage

 

  • no cash out or paying off other debts allowed with this program 
  • no deliquent mortgage payments in the last 6 months and only a
    total of one 30 day late payment is allowed in the last 12 months
  • no maximum LTV for new Fixed Rate Mortgages (based on credit score) 
  • 105% maximum LTV for those seeking a new Adjustable Rate
    Mortgage through the HARP program
     
  • first time HARP users only, if you closed a mortgage under previous
    HARP editions, you can not apply for this new edition
     
  • current home does not need to be a primary residence as long as the
    home was first purchased as a primary residence
     
  • any 2nd mortgages on property will have to be subordinated by the
    current 2nd mortgage holder, this depends on the 2nd mortgage
    holder agreeing to this
     
  • if the current mortgage has monthly Mortgage Insurance, the new
    mortgage must also have the same level of Mortgage Insurance

 

 

If you have a Freddie Mac mortgage in Pennsylvania and would like to lower your interest rate with the HARP Open Access program, feel free to contact me with further questions. 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Keith Landis is a Licensed Mortgage Loan Officer covering all of Pennsylvania.  He can be reached directly at 412-567-6560 at klandis@keystonehomefinance.com 

NMLS # 137243

 

Keystone Home Finance LLC - NMLS# 834342

 

www.keystonehomefinance.com

 

Comment balloon 0 commentsKeith Landis • May 18 2012 05:37AM
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