Real Estate Information Archive

Blog

Displaying blog entries 1-3 of 3

Cash In Refinance

Monday, November 6, 2017
by Don DeHanas, Broker

Would someone really refinance their home and not take money out of it? Certainly, if they could get a lower rate, build equity faster and pay off the home sooner.

For people with extra cash available, this can be very attractive compared to the low savings rates being paid by banks.

In the example below, the current mortgage is 5% for 30 years after 48 payments of $1,342.05. The owner can refinance for 15 years at 3.37%. If they put $36,000 into the refinance, their payments will be slightly more but the mortgage will be paid off in 15 years. At that same point, if they keep the current mortgage, their unpaid balance will be $136,049.03. If you have a goal to get your home paid off and have the available funds, a Cash-In Refinance may be just the strategy for you.

To learn more, call DeHanas Real Estate Services at 301-870-1717.  Know someone looking to buy, sell or rent a home? Call DeHanas Real Estate Servoices today!

Add Comment

Home Owner Refinancing Programs Extended to December 2015

Tuesday, April 23, 2013
by Don DeHanas, Broker

The Federal Housing Finance Agency (FHFA) has announced the extension of the Home Affordable Refinance Program (HARP) by two years to December 31, 2015. The program was set to expire December 31, 2013. We applaud this decision and will continue to fully support HARP for eligible homeowners seeking to avoid Foreclosure.
 

The Federal Housing Finance Agency (FHFA) today directed Fannie Mae and Freddie Mac to extend the Home Affordable Refinance Program (HARP) by two years to December 31, 2015. The program was set to expire December 31, 2013.

“More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk,” said FHFA Acting Director Edward J. DeMarco. “We are extending the program so more underwater borrowers can benefit from lower interest rates.”

 

In addition, FHFA will soon launch a nationwide campaign to inform homeowners about HARP. This campaign will educate consumers about HARP and its eligibility requirements and motivate them to explore their options and utilize HARP before the program ends. HARP is uniquely designed to allow borrowers who owe more than their home is worth the opportunity to refinance their mortgage. Extending the program will continue to provide borrowers opportunities to refinance, give clear guidance to lenders and reduce risk for Fannie Mae, Freddie Mac and taxpayers.

 

To be eligible for a HARP refinance homeowners must meet the following criteria:

 The loan must be owned or guaranteed by Fannie Mae or Freddie Mac.

 The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.

 The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.

 The current loan-to-value (LTV) ratio must be greater than 80 percent.

 The borrower must be current on their mortgage payments with no late payments in the last six months and no more than one late payment in the last 12 months.

Borrowers should contact their existing lender or any other mortgage lender offering HARP refinances. Check here to see if your loan is owned by Fannie Mae or Freddie Mac.

Fannie Mae and Freddie Mac have helped approximately 2.2 million borrowers refinance their homes since HARP was introduced by FHFA and the U.S. Department of the Treasury in April 2009.

Homeowners who have experienced a hardship, and do not qualify for this program, should be aware there are other alternatives to Foreclosure.  Please contact your Certified Distressed Property Expert at DeHanas Real Estate to learn more details.

Add Comment

HARP 2.0 - Home Affordable Refinance Program

Monday, March 5, 2012
by Don DeHanas, Associate Broker

HARP 2.0 - Home Affordable Refinance ProgramIn March, 2009 the federal government initiated the Home Affordable Refinance Program (what is now called HARP 1.0) in order to help struggling homeowners in cases where the value of their mortgage exceeded the value of their home. The larger goal was to help move the housing market towards stability. To many observers, HARP 1.0 failed to achieve its objectives. In response, the government has launched an updated version of the program, now called HARP 2.0. The hope for “underwater” or “upside-down” homeowners is that, this time, relief will materialize. Let’s look at how the new edition of HARP works.

The original version of HARP required that participants have a loan-to-value (LTV) ratio less than 125% but many homeowners’ LTV fell below this level so HARP was unavailable to them. Now, under HARP 2.0, homeowners must simply have homes valued less than their mortgage (and the loan must be owned or guaranteed by Fannie Mae or Freddie Mac). It also requires that the loan be in good standing with 12 months history of good payments.

Next, the original HARP was mainly designed for the five largest banks (Citigroup, Wells Fargo, Bank of America, Ally Financial and JPMorgan Chase), but HARP 2.0 includes mortgage companies across the nation. These loan servicers are able to qualify people for a loan even where the borrower previously had loan insurance attached – a problem with the first version of HARP.

Here are some additional changes in HARP 2.0:

  • It limits lender’s liability if loans default. Fannie and Freddie will not force lenders to buy back a problem loan. In short, this will increase HARP’s reach. Lenders will be more interested in participating so homeowners will face an easier time obtaining a loan modification.
  • Fees charged by Fannie and Freddie to lenders for high LTV loans have been removed so loans will be cheaper for homeowners.
  • Credit and income requirements have been eased. Provided that one’s new HARP monthly payment is not more than 20% more than the current payment, specific credit and income guidelines do not apply. This means that low credit scores or high debt-to-income ratios don’t automatically disqualify applicants.

There are a number of additional changes in HARP 2.0, all of which are designed to benefit homeowners in difficult situations. To read more visit here and here.

For more information about the HARP 2.0 program and all of your real estate needs contact DeHanas Real Estate Services at (301) 870-1717. We're here to help!

Add Comment

Displaying blog entries 1-3 of 3

Syndication

Categories

Archives

Contact Information

Photo of The DeHanas Team Real Estate
The DeHanas Team
DeHanas Real Estate Services
601 Post Office Road, Suite 2D
Waldorf MD 20602
Office: 301-870-1717
1-800-842-0190
Fax: 240-754-7867
Send an Email

Servicing all Anne Arundel County, Calvert County, Charles County, and Prince George's County as well as Annapolis, Bowie, Chesapeake Beach, Crofton, Dunkirk, Edgewater, Ft. Meade, Huntingtown, La Plata, North Beach, Odenton, Owings, Pasadena, Severn, Waldorf, and the Upper Marlboro areas of Maryland, all of Washington DC, and Northern Virginia, including Alexandria, Arlington, and King George County real estate advertised in this website are subject to the Federal Fair Housing Act of 1968 which makes it illegal to advertise any preference, limitation, or discrimination based on race, color, religion, sex, handicap and familial status, or national origin, or any intention to make any such preference, limitation or discrimination. DeHanas Real Estate Services will not knowingly accept any listing agreement for real estate sales in Anne Arundel County, Calvert County, Charles County, and Prince George's County as well as Annapolis, Bowie, Chesapeake Beach, Crofton, Dunkirk, Edgewater MD, Ft. Meade, Huntingtown, La Plata, North Beach, Odenton, Owings, Pasadena, Severn, Waldorf, and the Upper Marlboro, all of Washington DC, and Northern Virginia, including Alexandria, Arlington, and King George County areas which are in violation of the law. Our clients and customers are informed that all dwellings advertised on our website in Anne Arundel County, Calvert County, Charles County, and Prince George's County as well as Annapolis, Bowie, Chesapeake Beach, Crofton, Dunkirk, Edgewater MD, Ft. Meade, Huntingtown, La Plata, North Beach, Odenton, Owings, Pasadena, Severn, Waldorf, and the Upper Marlboro, all of Washington DC, and Northern Virginia, including Alexandria, Arlington, and King George County areas are available on an equal opportunity basis. All prices and finance claims appearing in this site are subject to change without notice.