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What is HARP?


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Refinancing options with little or no equity.

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What is HARP?

  1. 1. Finally, a Program for the Stable Homeowner! Presented by Kristina Lee Senior Loan Officer A-Plus Loans
  2. 2. Home Affordable Refinance – A New Refinance Option for Existing Fannie Mae Loans <ul><li>Introduction </li></ul><ul><li>A critical part of Fannie Mae's role in the Making Home Affordable Program is the Home Affordable Refinance Program (HARP).The goal of the refinance effort, as announced by the President, is &quot;to provide access to low-cost refinancing for responsible homeowners suffering from falling home prices.&quot; The expectation is that refinancing a Fannie Mae loan will put responsible borrowers in a better position by reducing their monthly principal and interest payments or moving them from a more risky loan structure (such as interest-only or short-term ARM) to a more stable product. Our solutions provide mortgage refinances for current LTVs up to 105 percent with mortgage insurance flexibilities. </li></ul>
  3. 3. Program Highlights <ul><li>Your loan must be owned by Fannie Mae. </li></ul><ul><li>You must be able to prove an excellent mortgage payment history. </li></ul><ul><li>Your current loan can be equal to as much as 105% of your current home value. </li></ul><ul><li>There is no mortgage insurance required if your current loan has no mortgage insurance. </li></ul><ul><li>If your loan has mortgage insurance, you may not qualify for this program. </li></ul><ul><li>If you have a 2 nd mortgage, you may keep it if your 2 nd mortgage lender accepts a reconveyance. </li></ul>
  4. 4. Required Borrower Benefit <ul><li>These new refinance options are intended to assist borrowers by providing a benefit to ensure long-term homeownership sustainability. Borrower must receive a benefit in the form of either: </li></ul><ul><li>a reduced monthly mortgage principal and interest payment; or </li></ul><ul><li>a lower interest rate; or </li></ul><ul><li>a more stable mortgage product, for example, movement from an ARM to a fixed-rate mortgage. (Note: lenders are encouraged to provide fixed-rate mortgages to borrowers whenever possible). </li></ul>
  5. 5. Step 1 <ul><li>Check if your loan is owned by Fannie Mae on their website. </li></ul><ul><li> </li></ul>
  6. 6. Step 2 <ul><li>Check your home value on our website. </li></ul><ul><li> </li></ul>
  7. 7. Step 3 <ul><li>Calculate your loan to value. Make sure that it is below 105%. </li></ul><ul><li>Equation: </li></ul><ul><li>Loan Amount/ Estimated Home Value X 100= Loan to Value or LTV </li></ul><ul><li>If this is below 105%, you are in good shape. </li></ul><ul><li>Proceed to step 4. </li></ul><ul><li>Note: If your LTV is a little higher than 105% and you have the money to pay down your balance, you may still qualify. </li></ul>
  8. 8. Step 4 <ul><li>Gather these items: </li></ul><ul><li>Current Mortgage Statement </li></ul><ul><li>Homeowner’s insurance policy </li></ul><ul><li>W2 for 2 yrs </li></ul><ul><li>Pay stubs for 2 months </li></ul><ul><li>Bank statement for 2 months </li></ul><ul><li>It will make it easier to assess your benefits with this program. </li></ul>
  9. 9. Step 5 <ul><li>Check the current interest rates and programs. </li></ul><ul><li>Visit </li></ul>
  10. 10. Step 6 <ul><li>Give me a call to discuss projected monthly savings, programs and rates. </li></ul><ul><li>I thank you for your time and look forward to speaking with you soon. </li></ul><ul><li>You have a few options to contact me: </li></ul><ul><li>Direct: 858-245-2502 </li></ul><ul><li>E-mail: [email_address] </li></ul><ul><li>Fax: 858-605-4265 </li></ul><ul><li>Monday- Friday 9am- 7pm PST </li></ul>