What is HARP 2.0 Mortgage Refinance? How can it benefit you as a Utah Homeowner?

The Home Affordable Refinance Program (HARP) is designed to assist homeowners in refinancing their mortgages – even if they owe more than the home’s current value.
The primary expectation for Home Affordable Refinance is that refinancing will put responsible borrowers in a better position by reducing their monthly principal and interest payments, reducing their interest rate, reducing the amortization period, or moving them from a more risky loan structure (such as an interest-only mortgage or a short-term ARM) to a more stable product (such as a fixed-rate mortgage).

I’m sure you are still wondering “Well how does it work?”. You have to qualify for a HARP Mortgage and this means that you have to be current on your mortgage, verifiable income and your home has to be owned by Fannie Mae or Freddie Mac. There’s a simple tool on our website at www.mymtgsolution.com that will help you find out if your home is owned by Fannie Mae or Freddie Mac. 

If you have tried to refinance in the past but were un-able there may still be some options for you. Don’t throw in the towel yet, with mortgage interest rates low, now is the time to take advantage. Contact one of our Utah HARP Mortgage Refinance Experts to learn how you can take advantage today!

Bud Bruening

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Mortgage Rates hit Rock Bottom but getting that Rate Quote is the Hard Part

With mortgage rates at a 50-year low and banks near his Brookline, N.H., home touting offers of 4% or less, Tom Rogers thought it would be a perfect time to refinance. But in spite of a solid credit score, after an exhaustive survey of lenders in the area and online, Mr. Rogers couldn’t find a single one willing to give him such a rock-bottom rate. He eventually settled for a mortgage almost a full percentage point higher than what he had hoped for.

“I was annoyed,” he says. “We’re someone they should want to do business with.”

It is an increasingly common frustration. The gap between the lowest advertised mortgage rate and the average rate that borrowers actually get is as high as it has been in two years, save a single week last September. As of last week, the lowest available rate—according to a survey of more than 200 lenders by LendingTree.com—was 3.75% for a 30-year fixed mortgage, but the average rate was 4.39%. At the current 0.64 percentage-point spread, the difference in rates could mean an extra $53,000 in interest payments over the life of a 30-year, $400,000 mortgage.

While there is always a spread—not all borrowers qualify for the lowest rate, after all—it is usually much smaller: An average spread is usually around 0.40 percentage point.

The bigger discrepancy of late has little to do with borrowers’ credit scores, which historically have largely decided what rates lenders choose to offer. Instead, it is more reflective of changes in the way lenders approach their business. Lenders have raised their profit margins by 1.5 to 2 percentage points in the past month, according to Informa Research Services, by offering borrowers slightly higher rates.

Lenders say they haven’t lowered rates further because, simply, they don’t have to. The mortgage market is not the cut-throat business of years past. Most lenders are happy to make mortgages but not at any cost. And there is still plenty of demand given that rates are still historically very low. As it is, lenders are able to make loans that, while still cheap, are more profitable, says Michael Fratantoni, vice president of research and economics at the Mortgage Bankers Association, a trade organization that represents mortgage lenders.

The lowest advertised rates are available for only those borrowers with pristine credit. Anyone else could consider waiting, as the rates they get may be lower as soon as the current surge in demand ebbs, possibly as soon as the end of September. For those looking to refinance or buy a home now, mortgage analysts suggest taking the lowest rate offered and shopping it around to other lenders. In particular, regional, rather than national, outfits, may be more willing to negotiate.

Bud Bruening

Details on the Home Affordable Refinance Program (HARP)

The Home Affordable Refinance Program (HARP) mortgage is a refinance option created by the US government that is currently available through June 30, 2012.

The objective of a HARP refinance is to provide creditworthy homeowners, who have proven a commitment to paying their mortgage, the opportunity to get into a new, stable mortgage with better terms. Homeowners whose interest rates are much higher than the current market rate generally see a reduction in their monthly payment when they refinance through HARP.

The HARP mortgage is a new loan and will require a loan application and underwriting process. Loan refinance fees will apply.

You may be eligible to apply for a HARP mortgage if you meet all of the following requirements:

• You have a mortgage owned or guaranteed by Fannie Mae or Freddie Mac;
• You do not have an FHA, VA or USDA loan;
• You are current on your mortgage payments and have not been more than 30 days late making a payment over the last year;
• You owe more than the home is worth, but your mortgage does not exceed 125 percent of the current market value of your home;
• The refinance will improve the long-term affordability or stability of your mortgage; and
• You have the ability to make the new payments.

Bud Bruening

Bank of America Foreclosures Pick Up Speed on the West Coast

Posted by Bud Bruening,Tuesday, September 13th, 2011

Notice of default filings jumped nearly 70% in California from the previous month, led by renewed activity from Bank of America (BAC: 7.00 -0.71%), according to the data provider ForeclosureRadar.

Foreclosure starts, which is the first notice filed whether it’s an NOD or a notice of trustee sale, increased in five West Coast states from the previous month: California, Arizona, Washington, Oregon and Nevada.

BofA foreclosure starts more than doubled in August, jumping 116% from the previous month. Wells Fargo (WFC: 24.36 +1.08%) and U.S. Bank (USB: 22.96 +2.73%) also showed increases but fell short of the BofA restart, according to ForeclosureRadar, which monitors West Coast states.

“While it can’t be said for every state in the nation, we are seeing continued improvements in foreclosure volumes in many areas of the country, and that is a potential harbinger for housing market recovery,” a BofA spokesperson said. “Strong gains like that from July to August demonstrate our progress – primarily in non-judicial states like California and Nevada – clearing more volume to advance to foreclosure once we pass the numerous, improved quality controls we have in place and only after all other options with homeowners have been exhausted.”

Bank of America along with many others froze the foreclosure process in the fall of 2010 to sort out mishandled foreclosure documentation in a scandal that became known as robo-signing. The 14 major servicers signed consent orders with federal regulators earlier this year. After a review of 2,800 foreclosure files – roughly 200 per bank – regulators found “insufficient processes” and ordered more in-depth third party look backs.

“Bank of America appears to be primarily responsible for the surge in foreclosure starts this month,” said Sean O’Toole, CEO of ForeclosureRadar. “Since their average time to foreclose has recently increased to more than a year, it is unclear that these foreclosure starts will lead to an increase in foreclosure sales anytime soon.”

In California, it takes an average 333 days to complete the foreclosure process, which is 49 days more than one year ago.

Properties sold back to the bank, or REO, increased 243% in Oregon for the month as Recontrust, a subsidiary of BofA, began clearing 2,800 foreclosures that began in April, according to ForeclosureRadar.

“The industry has not yet returned to normal or necessary foreclosure activity levels, but progress is certainly being made,” the BofA spokesperson said.

Bud Bruening

Time Running Out for Energy Efficiency Rebates in Utah

posted by Bud Bruening

SALT LAKE CITY — Time is running out for homeowners to receive cash rebates of up to $2,000 for making energy efficiency upgrades.

State officials say the Utah Home Performance program has helped hundreds of residents make cost-saving improvements. They say residents still have a chance to participate on a first-come, first-served basis, although much of the funding has already been distributed.

Officials say households that get a Home Performance Assessment and implement the recommendations typically reduce their annual energy use by 20 percent or more. Homeowners can still sign up for a Home Performance Assessment even after rebates run out.

More information about the program and rebates is available online at utahhomeperformance.com or by phone at (877) 298-4675.

Bud Bruening