Arizona Mortgage

If you’re looking for home refinancing options, you may have had difficulty in the past – especially if you owe more than your home’s value on your mortgage. Getting refinancing consumes much of your home equity, which is in short supply for people who already have a mortgage.

But with the government’s extension of the HARP Program, you can now refinance your home with a variety of lenders – even if you owe more on your mortgage than your home is worth. This ‘HARP 2.0′ is a great way for responsible borrowers to find mortgage relief.

But how does the program work, and who’s eligible for it? Here’s what you need to know.

HARP: Affordable Refinancing For Low-Equity Borrowers

HARP, the Home Affordable Refinance Program, is a government initiative that was created in 2011. The program is designed to help homeowners who owe mortgages worth more than their home equity – so-called “underwater” homeowners. Under the original HARP program, homeowners with little or no home equity could refinance their home and benefit from lower interest rates – something that wouldn’t otherwise be possible.

HARP 2.0, an updated program, was released in 2012. HARP 2.0 is different from the original program in two critical ways. First, it allows borrowers who have mortgage insurance to refinance their homes. Second, it absolves lenders of any responsibility for fraud on previous loans (which removes barriers to issuing new loans).

Do You Qualify? Eligibility Requirements For The HARP 2.0 Program

HARP 2.0 lists several criteria that applicants must meet in order to be eligible for refinancing.

In order for you to be eligible for HARP 2.0, your mortgage must be owned or guaranteed by either Freddie Mac or Fannie Mae. If you signed your mortgage with another provider, it must have been sold to Freddie Mac or Fannie Mae either on or before May 31, 2009. You must also have no previous refinances under HARP.

(Exception: Fannie Mae loans refinanced under HARP between March 2009 and May 2009 are still eligible for HARP 2.0).

You need to be able to prove your income, employment history, credit history, and assets. Some lenders will require a minimum credit score to qualify for HARP 2.0, although this may not be the case in all instances.

Are you underwater on your mortgage? If you qualify for HARP 2.0, you could refinance your home at a lower interest rate and get the relief you need. Contact your trusted mortgage expert to learn more about how HARP 2.0 can make your mortgage more affordable.

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Refinancing a home loan can provide numerous benefits, but it can also seem daunting and intimidating to some. Many homeowners would love to lower their interest rate or take advantage of other benefits associated with refinancing, but they are concerned about the time and expense associated with refinancing their current mortgage. The FHA Streamline Refinance loan program is designed to provide those who currently have an FHA loan with an easier way to refinance their mortgage, and this may be a desirable option for many.

No Appraisal Needed

One common complaint that people have when applying for refinancing relates to the expenses and time, and the appraisal can have a big impact on both of these factors. The good news is that with the FHA Streamline Refinance loan program, there is no requirement for a new appraisal. The home value at the time of the original loan will be used with the refinance loan, and this is truly beneficial for those who are currently underwater with their home value due to decreasing property values.

Lower Interest Rates

With the FHA Streamline Refinance loan program, borrowers can take advantage of today’s interest rates without needing to go through a full refinance process. This loan program is available to those who have a current FHA loan program, and it is a great program for those who have an interest rate that is higher than the current rates to lock in a lower rate and a lower mortgage payment.

Great Loan Terms

As with the traditional FHA loan program, the Streamline program also offers great loan terms. Borrowers can choose between a 15 and 30-year fixed rate loan, and borrowers will not be subject to a prepayment penalty. These loan terms provide borrowers with flexibility when refinancing their loan to take advantage of a lower interest rate.

The FHA Streamline Refinance loan program is just one of several options available to borrowers who are interested in refinancing their current FHA loan program. It offers numerous benefits to homeowners, but it is not the only option available.

It is wise for homeowners who are interested in refinancing their current mortgage to compare all of the options thoroughly before making a decision. It is best to seek assistance from a trusted mortgage professional. They can help with specific information and guidance with the selection of the right a loan program for each homeonwers needs.

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Refinancing a mortgage can provide a homeowner with many benefits, and some may be interested in refinancing their traditional mortgage into an FHA mortgage to take advantage of low interest rates. Depending on the specific circumstances, this step may lower the monthly payment, reduce interest charges, adjust the loan term so that it is more beneficial for achieving financial goals. Those who are interested in refinancing their mortgage may consider these steps.

Understand the Rules and Requirements

There are specific rules in place regarding refinancing under the FHA program. For example, the loan amount may be up to 96.5 percent of the value of the home, but the homeowner cannot take cash out of the refinance transaction. If cash is taken out, the loan-to-value limit under the FHA program is usually 86 percent of the property value.

These limits are in place for loan amounts that are $417,000 and under. Loan amounts that are between $417,000 and $729,750 will fall under a different set of rules. Homeowners should be aware of these rules to ensure that the FHA program is the best fit for their unique goals. If a FHA Mortgage does not fit your needs there are other optioans that may suit your situation better.

Review Goals and Current Mortgage Details

The next step for homeowners to take is to review their own financial goals and to define their reasons for refinancing. In addition, it is important for homeowners to contact their current mortgage company to learn more about their current interest rate, if there is a prepayment penalty and the current loan balance. Estimating the property value is also important. Homeowners may have a reasonable idea about property value, or they can contact a real estate agent for a valuation. When all of this information is taken into account, the homeowner will have a better idea about what to expect from refinancing.

Each homeowner will be in a unique situation regarding current loan details, property value and goals that they want to achieve through refinancing. It can be confusing to decide if refinancing is the right move to make, and it can be even more complicated to determine which loan program is a best-fit for the goals of the homeowner.

Those who are interested in refinancing their traditional mortgage into the FHA loan program or other refinancing program should contact their trusted mortgage professional soon to discuss the options and to determine if this is the best fit for their situation.

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Home buyers are often drawn to the FHA mortgage program due to the low interest rates, low closing costs and generally attractive loan terms. However, there will come a time when many who have an FHA mortgage want to refinance. After all, refinancing a mortgage may allow you to tap into your home’s equity, obtain a lower interest rate, extend or shorten the loan term or achieve other goals you may have. While there are different loan programs that you can use to refinance, many are taking advantage of the FHA streamline refinance program.

What Is the Streamline Refinance Program?

This is a unique program that is ideal for many who have an FHA loan, and this includes those who are underwater with their home mortgage. This program is unique from others because there is not an appraisal requirement. Many other programs will offer a certain loan amount based on the current value of the home. When the value has declined since the purchase, it may not be possible to refinance with other loan programs. However, this program is well-suited for such situations, and this is regardless of the amount your home has declined in value.

The Loan Terms

While one of the key selling points relates to the fact that the FHA Streamline program does not require an appraisal, there are other selling points. This is a low closing cost option that can close quickly. In addition, you can choose from a fixed or adjustable rate, and the interest rates are very competitive. There are also 15 and 30-year terms available. Plus, the loan program does not have a prepayment penalty associated with it.

Many borrowers also appreciate the fact that the underwriting process is streamlined, and there is minimal documentation required. In fact, there is not an income or employment verification in place, so you will not have to worry about providing all of the paperwork that would need to provide for other loan programs.

If you have an FHA loan currently, you may be ready to refinance. Regardless of what your current goals are for refinancing your existing mortgage, it is smart to learn more about the FHA Streamline mortgage. With how easy it is to qualify and how attractive the loan terms are, this may be the loan program that you have been searching for. You can speak with a home loan specialist about the qualification requirements and loan terms that you may qualify for under this program.

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Refinancing your home mortgage can be beneficial for you for a number of reasons. As a homeowner, you may have spoken with some of your friends and neighbors who have already refinanced, and you may have heard about some of the different benefits associated with refinancing your mortgage. For example, refinancing can result in a lower mortgage payment, the ability to pay your mortgage off more quickly, reduced interest charges and other benefits. If you have never gone through this process yourself, however, you may not know what to expect with the refinancing process.

Determining if Refinancing Will Benefit You

The actual benefits that you would receive by refinancing will be unique to your situation. Refinancing is a process that results in replacing your existing mortgage with a new mortgage. This will establish your home financing with a new interest rate, a new term and a different mortgage payment. In some cases, the new loan amount that you qualify for will be higher than the amount that you owe, and you may be able to obtain cash out of the refinancing process because of this. One of the best ways to determine what the specific benefits are for refinancing your mortgage is to speak with a mortgage professional directly.

How to Get Started

Refinancing a home mortgage is very similar to applying for the original home mortgage when you purchased the home. However, additional information will be requested regarding your current mortgage, and some information may also be requested about the original purchase. You generally will need to provide tax returns, bank statements and other related financial information to complete the process.

However, initially, you may only be required to fill out a loan application and to agree to have your credit report pulled. This initial step will help a mortgage professional to determine if you may qualify for a refinance mortgage and what the estimated loan terms may be. Generally, this process can be completed quickly.

When you close on your refinance mortgage, the closing will typically take place in a title agency or another similar venue. The title or escrow agent will facilitate the process of using the funds from the new mortgage to pay off the balance on the existing mortgage and to complete any other required steps on your behalf. While there are some steps that need to be taken for you to refinance your mortgage, the process is typically rather easy when you work with the right mortgage professional. You can request more information about refinancing your mortgage when you speak with a loan specialist.

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Refinancing a home mortgage can provide you with an incredible range of benefits. These include everything from reducing your mortgage term and lowering your payments to helping you more effectively build equity or pulling equity out to use for beneficial purposes.

One common question that many homeowners ask is how often a mortgage should be refinanced. While there are benefits associated with mortgage refinancing, there are also some points to consider before you rush into the process.

Think About Refinancing Costs

First, remember that each mortgage application will come with refinancing costs. These costs can equate to thousands of dollars in some cases, and they include title fees, lender fees, appraisal fees and more. While these costs can typically be rolled into your home mortgage so that you pay very little money out of pocket, these costs will increase the amount of debt that is tied to your home. When you refinance too often, you are negating the effects of principal reduction from your mortgage payments.

Consider the Impact On Home Equity

Some who refinance will choose a straight rate and term refinance, and they will not pull equity out of their home. Others, however, have the desire to tap into their home equity to pay off other debts, to fix up the house, to take a vacation or for other purposes. When you tap into your home equity, you may be having a negative impact on your financial situation, depending on how you use the funds.

Pay Attention To Your Final Loan Payoff Date

Before you make a decision to refinance your home mortgage, you also should focus on your loan payoff date. Many have the goal in mind of paying off their home mortgage before they retire, and this is especially true if you plan to live in the home after retirement. On the other hand, you may have plans to sell the home and downsize before retiring. Your refinance will adjust your loan payoff date, so this is an important factor to weigh into your decision making process.

You may know people who refinance every year, and you may know others who have owned their home for a decade or longer without ever having refinanced. Each homeowner has a unique financial situation. You can speak with a mortgage professional to learn more about the specific benefits associated with a refinance loan, and you may also keep these points in mind to assist with your final decision.

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Refinancing your mortgage can make good financial sense, as long as you are doing it for the right reasons. Before considering a refinance, it’s worth spending some time to assess what your financial goals are.

Lowering Your Interest Rate

One of the most common reasons to refinance a mortgage is to take advantage of a lower interest rate. Because mortgages are long-term loans, even a slight drop in the interest rate on the loan can make thousands or even tens of thousands of dollars of difference over the life of the loan.

Before refinancing to get a lower rate, you’ll want to ensure that you will stay in your house long enough to reap the benefit of the lower payment. For example, if your refinance is going to save you $50 a month and your closing costs are $3,000, you would need to stay in your home at least five years just to break even.

A Shorter Loan Term

Another common reason people refinance their mortgage is to shorten the term of the loan. Though a 30-year loan gets you a much lower monthly payment, you wind up paying much more in interest over the term of the loan. If interest rates drop significantly, you might be able to refinance into a 15-year loan and only pay a couple hundred dollars more a month, which, if you can afford it, will mean you pay off your house much faster and pay significantly less in finance charges.

Moving From A Variable To Fixed Interest Rate

If you got a loan with a variable interest rate, you likely will want to refinance at some point into a fixed-rate loan. When you do so, however, you want to make sure you are getting a better deal. If interest rates look like they are going to increase, that would be a good reason to move to a fixed-rate loan.

Getting Rid Of Mortgage Insurance

If you put down less than 20 percent of the purchase price of your home, you likely had to get mortgage insurance. Depending on the insurance policy and how quickly your home appreciates in value, it might be beneficial to refinance at some point if you have enough equity in your home to drop the mortgage insurance.

If you think the time is right to consider refinancing your mortgage, contact your trusted mortgage professional to get more information.

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With the start of the New Year, it’s common to set new resolutions. While there are many goals that are worthwhile, paying off your mortgage as soon as possible can significantly improve your financial position and is a great goal to aim for. With that in mind, let’s take a quick look at a few helpful tips for paying your mortgage off sooner.

Refinance To A Shorter Mortgage Term

For example, switching from a 30-year mortgage to a 15-year will get your mortgage paid off in half the time it would have originally taken, and it will also lower the total amount owed. By switching to a 15-year mortgage plan, you can save well over a decade’s worth of interest payments.

Carefully Consider How Much Space You Need

Many people have more home than they can afford. By downsizing to a smaller, cheaper house, you should be able to pay more than your minimum payments each month. Other nice perks, such as saving money on heating and air conditioning, may also be able to help make the goal of paying off your mortgage seem more attainable.

Make Payments Every Other Week

Mortgage companies often give borrowers the option of choosing to make payments either every month or every other week. If you opt to pay every other week instead of every month and have a standard, 30-year mortgage, you’ll be able to pay off your debt about six years sooner than expected.

Cut Expenses

Find a regular expense in your budget that isn’t a necessity and start using that money towards your mortgage instead of what you would normally spend it on. For instance, bringing lunch to work each day instead of eating out could easily save a person at least $100 per month. That’s over $1,000 per year!

Set Extra Money Aside

To pay off your mortgage quickly without having to cut regular expenses, use overtime income, holiday pay and gift money for extra mortgage payments. This way, you can pay down your debt without having to lower your standard of living. Another option is getting a part-time job for a few hours each week and putting the extra income towards your house.

There are many things that you can do to pay off your mortgage quickly, but you don’t have to do them all. Whether you choose one tip from this list or all five, you should be able to start making progress on your loan. For more information about reducing your payments, be sure to contact your mortgage professional today.

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Whether you’ve been thinking about ways that you can draw on your home equity to fund a renovation project or you want to take advantage of low interest rates before they rise again, refinancing your mortgage is an excellent option.

In today’s blog post we’ll introduce mortgage refinancing and discuss a few of the ways that you can use this tool to help accomplish your financial goals.

Cash-In and Cash-Out Refinancing

Many homeowners refinance their mortgage in order to take some of the home equity out for other purposes. In a “cash-out” refinancing, you take out a new mortgage loan which is greater in value than your current loan. After paying off the existing mortgage you’ll receive a check for the difference which can then be reinvested in home upgrades or put to use elsewhere in your financial portfolio. You may also be able to get a better interest rate in this type of refinancing, saving additional money over the long term.

Do you owe more on your mortgage than your home is currently worth but still want to take advantage of lower interest rates? If so, “cash-in” refinancing is an option that can help you to avoid the mortgage insurance costs that you may be facing when you refinance. As the name implies, cash-in refinancing will provide you with a loan that is for less than the amount that you currently owe, so you’ll need to add “cash-in” to make up the difference.

Home Affordable Refinance Program or “HARP” Refinancing

If you find that you’re unable to refinance your mortgage as the value of your home has declined, the federal government’s Home Affordable Refinance or “HARP” Program may be an option. HARP was developed to assist homeowners in the wake of the 2008 financial crisis and the resulting instability that was caused in the real estate and mortgage markets. If you have been making your mortgage payments on time, have a mortgage guaranteed by Fannie Mae or Freddie Mac and your current “Loan to Value” ratio is greater than 80% it’s likely that you’ll qualify for HARP refinancing.

The above are just a few of the ways that you can refinance a mortgage to better suit your needs and financial goals. Contact your local mortgage professional today to learn more about refinancing and to discuss how you can tap in to the home equity that you’ve built up over time.

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