Underwater Homeowners in NC still want to take advantage of lower than anyone can believe mortgage rates! There are several programs available for NC Homeowners – it just depends on what kind of loan you currently have. If you have a Conventional loan on your property – you need to check out the way HARP mortgage Loans work.
“When the Home Affordable Refinance Program (HARP) was launched in 2009, it sought to help homeowners with underwater mortgages refinance their loans into lower monthly payments and /or interest rates. Unfortunately, the first version of the program failed to help as many homeowners with underwater mortgages as was hoped, leading to the release of a new and improved version of HARP, dubbed HARP 2, to deal with the complications.
Perhaps the biggest improvement to the program was its view of homeowners with private mortgage insurance (PMI) and lender paid mortgage insurance (LPMI). Either PMI or LPMI is required for mortgage borrowers who are unable to make a down payment of at least 20% of the mortgage amount. The insurance is an insurance against default, and historically presented several obstacles for homeowners looking to take advantage of the first version of HARP. While technically possible to refinance under the first version of the program with PMI or LPMI, North Carolina mortgage holders who tried to do so were required to jump through several hoops in order to make the refinance a success.
Now, with HARP 2 rolled out and in full effect, mortgage borrowers with either PMI or LPMI are allowed much easier access to all the benefits that HARP has to offer.
Unfortunately, individual banks and lenders are under no obligation to honor the HARP 2 PMI and LPMI exceptions. This does not mean, however, that finding a bank or lender who will refinance a loan with PMI or LPMI under the HARP 2 program is impossible, but it is not necessarily easy. Banks and lenders who will work with underwater North Carolina mortgage holders with PMI or LPMI exist, they just have to be found.
The fact that a mortgage was originally issued by one lender does not prevent the underwater mortgage holder from refinancing through another lender. Therefore, underwater mortgage holders who have been denied a HARP 2 refinance because of PMI or LPMI restrictions are urged not to give up and to shop around until they find a lender who will help. This benefit is another change that was made to the HARP program when it was released as HARP 2.”
For FHA loans there are no appraisal required loans called Streamline Refinances. For folks who closed on your home before the deadline, these are pretty sweet deals. If you have a VA loan, you can also refinance your mortgage under a streamline refinance program.
FHA and VA Refinances using the Streamline program require that the new loan have EXACTLY the same borrowers and co-borrowers that were on the original mortgage. HARP 2 refinances include a easy removal of co-borrowers from mortgages when properties are n0 longer shared, and the allowance of an unlimited loan-to-value (LTV) ratio. The LTV ratio refers to the value of the loan against the value of the assigned mortgage – in other words, the amount that a loan is “underwater”.
Have questions about a FHA Streamline Refinance of Investment Property? Call Steve and Eleanor Thorne, 919 694 5058. We CAN DO this program – and we’d love to help you save some money!