Many homeowners are feeling like they are trapped and their back is against the wall with their monthly mortgage payment looming over them. ARMs, foreclosures, underwater, and joblessness are all key terms repeated time and time again on this subject. So, the question becomes – Why refinance my mortgage fast? Will finding a quick mortgage refinance help?
Reason 1: Refinance to Saving Your Home from Foreclosure
Having trouble paying the mortgage because the payments are too high or you are making less money? It is time to approach your lender about refinancing and even a loan modification. Refinancing now through the new HARP 2 program is easier because the loan to value ratio standard has been eliminated. This means you can be far underwater on your home and still get refinancing. Also, the cost of refinancing through HARP is far lower than a conventional refinance. For more information about loan modifications or the new HARP 2.0 program – visit the following links on Fast Mortgage Loan Approval that dig deeper into this topic:
*How to Refinance Your Underwater Mortgage Via Harp 2.0
*Two Options for Those Far Underwater or at Risk of Foreclosure
Reason 2: Lock into a Fixed-Rate Mortgage
The second reason to refinance your mortgage fast is to lock in a fixed rate mortgage and get rid of your looming ARM. Fixed rates are so low now, they are likely at the same rate of your ARM. Even if the rate is very slightly higher, the piece of mind from a reset or higher rate will end with a refinance. This is a proactive way to add more predictability to your household finances and helps homeowners plan for the long term.
Full List of Reasons
Financial institutions are required to find who is eligible for aid because of the recent foreclosure settlement. This must happen within the next six to nine months while many need help right now. Most critics say that the settlement is too little too late. Those in trouble now should likely not count on receiving anything significant. So what should someone do if they need help now?
The best likely solution for homeowners in need is to attempt a loan modification. It is possible that lenders will reduce principal balances. This would lower the mortgage amount which could provide the homeowner with a small amount of equity while reducing monthly payments. Unfortunately, the recent settlement will help only a fraction of Americans who are having mortgage troubles or those who are underwater. This continues to be the case even though Obama recently increased lender incentives to write-down mortgages.
Learn about the 60 minute loan modification.
Another option is to try refinancing under HARP 2.0. Learn more about this program the post entitled “How to Refinance Your Underwater Mortgage via HARP 2.0.”
Click here for more options for those far underwater.
Click here to fight foreclosure and save your home.
Recent data shows that over 10 million Americans are underwater on their mortgage. Being underwater on a mortgage means that the current market value of the property exceeds the amount owed on the loan. The federal government found that the first HARP program did not help enough homeowners so it has changed eligibility requirements.
Big Change from Harp 1 to Harp 2.0
Harp 2.0 removed the LTV or loan-to-value ratio cap. Under HARP 1, if you owed $130,000 on your mortgage but your property value appraised at $100,000 then you could not refinance. Harp 1 did not allow the ratio between the loan and the property’s value to exceed 125%. The LTV requirement is gone is HARP 2 for fixed-rate mortgages backed by Freddie and Fannie.
Other changes include:
- Elimination of some “risk-based” fees for homeowners
- Waiving some representations and warranties that lenders use to make loans owned or guaranteed by Freddie and Fannie.
- No need for a new property appraisal with a reliable automated valuation.
- Date extension for the HARP program until 12/31/13 for loans originally sold to Freddie and Fannie on or before 5/31/09.
- Freddie/Fannie guaranteed mortgages only
- Up-to-date on payments
- No minimum credit score, qualifying income, or property appraisal
- Must be underwater or nearly underwater.
- Some double-dips are allowed if homeowner took advantage of HARP 1 during March – May 2009.
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