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Fannie Mae DU Refinance Plus
Posted by: | CommentsFannie Mae introduced the DU Refinance Plus program in 2009 in an effort to extend refinancing relief to borrowers that lost their home equity in the housing crisis. With this Fannie Mae refinance program, borrowers who had a mortgage owned by Fannie Mae, could refinance their mortgage up to 105% loan to value.
Fannie Mae accomplished a few of their goals with the DU refinance plus program, but with home values declining further, Fannie Mae quickly found that 105% wasn’t enough as lenders still struggled to qualify borrowers with the DU Refinance Plus program. In an effort to stem the foreclosure crisis, Fannie Mae worked out a more agressive refinancing alternative with Freddie Mac. They called the program the Home Refinance Affordable Program and borrowers were able to refinance their first mortgage lien up to 125% loan to value. The Home Affordable Refinance Program was as introduced to supplement the reduced cost mortgage refinancing efforts that many of the lenders were extending to distressed homeowners. This program was warmly received as thousands of borrowers looked to to the Home Affordable Refinance for securing them a lower mortgage payment.
The Fannie Mae refinance loans have made a positive impact on reducing foreclosures, but the Obama administration wanted to go a step further. Emergency Homeowner Loan Program is set to roll out in September and this FHA short refinance loan will actually write down the mortgage balances to the fair market value.
Getting Approved for Mortgage Refinancing Is Challenging
Posted by: | Comments2010 may be remembered as the year for the lowest mortgage rates that hardly anyone qualified for. If you meet the lending guidelines, then this may be the best mortgage refinancing time. Unfortunately, with high unemployment and tighter lending requirements, a vast majority of homeowners are unable to qualify for a refinance loan. The Federal Reserve has made significant efforts to stimulate the economy by keeping the interest rates at record lows. At some point the Fed will have to correct the market and begin hiking key interest rates. In years past, when mortgage rates fell, millions of homeowners would rush to refinance their home loan.
Get a Free Refinance Quote with No Obligation!
The Lead Planet, a mortgage lead generation company reported that refinance leads had steadily risen over the last few months. Even the Mortgage Bankers Association reported that home refinance applications spiked in recent weeks as interest rates dipped to record lows consecutively. MBA said that the refinance boom in 2003 experienced a much higher volume of refinance applications.
Freddie Mac indicated last week that the average rate on a 30-year fixed rate loans below $417,000 fell to 4.42% with an average 0.7 point. That was down from 4.44% the previous week and from 5.12% at this time last year. Rates are about one-eighth of a point higher on loans between $417,000 and $729,500. In most cases to get approved for these low conventional mortgage rates, a borrower today must have a FICO score of 720 or higher, a loan-to-value ratio of 80 percent or less and at least two years of fully documented income. However the government mortgage rates are just as low and the guidelines are more forgiving on credit with VA and FHA home loan options.
Relief for Refinancing with Short Refinance and Emergency Homeowner Loan Programs
Posted by: | CommentsHome loan relief is becoming more controversial as the Obama administration continues to make moves to forgive mortgage debt with short refinancing initiatives that will write-down home loans for homeowners that find themselves stuck with underwater mortgages. Republicans and Democrats alike are complaining that Obama is trying to buy votes with debt forgiveness.
With home mortgage rates at the lowest point since Freddie Mac began tracking interest rates, what more can the Federal Reserve do? The Fed has little power left to lift the economy out of its rut. Congress, with an election looming, has no appetite for more stimulus. Typically, the Fed can lower home loan rates in an effort to stimulate consumer spending in hopes that it will invigorate the economy. But the benchmark interest rate controlled by the Fed has been almost zero percent for more than a year now.
The Obama administration already funded the Home Affordable Refinance Program that enabled mortgage refinancing to 125% on select Fannie Mae and Freddie Mac mortgage portfolios in an effort to combat the highly deflated home values that have prevented many Americans from being approved to refinance into a more affordable fixed mortgage payment.
| Eligibility for the HARP home loan relief was difficult and not enough homeowners met the requirements set forth to refinance their underwater mortgages.In a recent article, Deutsche Bank indicated that there may be 20 million underwater mortgage loans that are outstanding by the end of 2011. This puts a significant amount of pressure on homeowners that are already struggling with high unemployment and tighter loan guidelines. |  |
Now the government has given HUD the authority to approve an FHA short refinance option that actually reduces the principal mortgage balances. FHA insures home mortgages, but the agency has nearly used their emergency loan reserves. Who do you think is paying for this? – - Yes the U.S. tax payers will be picking up the tab on this mortgage bail-out initiative as well. And if that’s not enough risk for the government, they also agreed to another mortgage relief initiative with the Emergency Homeowner Loan Program that is designed to help self-employed and un-employed homeowners for six months.
The Fed announced this week they it would use the proceeds from its huge portfolio of mortgage securities to buy government debt. The idea is to make cheap credit even more affordable, particularly for things like mortgage loans. The problem is that Americans who are worried about job stability, not to mention volatility in the stock market, don’t want to borrow. They saved 6.2% of their disposable income this spring.
Sure, the Federal Reserve still has options. It could launch another trillion-plus-dollar program to buy government debt or mortgage securities like it did when it was battling the recession and financial crisis. But the Fed is unlikely to commit that much money unless things get a lot worse. Plus there are risks. Regulators are resistant to push interest rates on low rate home loans because they don’t want to artificially jump-start the housing sector like what happened that inflated the housing bubble. The Fed could slash the rate it pays banks to zero in an effort to keep money parked there, a move aimed at getting banks to lend more, but banks are not exactly feeling cash-rich, either.
As reported previously, home mortgage rates have fallen to record lows. 15-year mortgage rates fell to 3.92 % this week and rates on 30-year mortgage loans were published at 4.44 %. Still, consumers aren’t in a mad rush to purchase homes and most homeowners are unable to meet the tighter guidelines for FHA refinancing. HUD is considering implementing a minimum credit score and FHA guidelines may start requiring these higher risk borrower to put as much as 10% up for down-payments in an effort to stem foreclosures and loan defaults. Many mortgage lenders believe that if the loan requirements were loosened for a period to get the distressed homeowners approved for refinance loans or loan modifications that our housing sectors will rebound locally and nationally.
Emergency Homeowner Loan Program
Posted by: | CommentsThe U.S. Department of Housing and Urban Development just confirmed that they will be launcing a new $1 billon mortgage relief program called the Emergency Homeowners Loan Program. The Obama administration has extended several mortgage bail-out programs for distressed homeowners like the Home Affordable Refinance Program, but very few borrowers were able to qualify for this relief measure that enabled homeowners that had mortgages owned by Fannie Mae or Freddie Mac the ability to refinance their under-water loans up to 125% loan to value.
Bill Apgar, HUD Senior Advisor for Mortgage Finance said today, “HUD’s new Emergency Homeowner Loan Program will build on Treasury’s Hardest Hit initiative by targeting assistance to struggling unemployed homeowners in other hard hit areas to help them avoid preventable foreclosures.” Apgar continued, “Together, these initiatives represent a combined $3 billion investment that will ultimately impact a broad group of struggling borrowers across the country and in doing so further contribute to the Administration’s efforts to stabilize housing markets and communities across the country.”
Emergency Homeowner Loan Program to Help Refinancing Under-Water Mortgages
The Obama Administration today announced additional support to help homeowners struggling with unemployment through two targeted foreclosure-prevention programs. Through the existing Housing Finance Agency (HFA) Innovation Fund for the Hardest Hit Housing Markets, the U.S. Department of the Treasury will make $2 billion of additional assistance available for HFA programs for homeowners unable to qualify for mortgage refinancing as well as struggling to make their home loan payments due to unemployment.
The Emergency Homeowner Loan Program will offer loan relief and assistance for up to 24 months to homeowners to struggling homeowners who are at risk of foreclosure. This finance relief program is targeting homeowners who have experienced a significant reduction in income due to involuntary unemployment, underemployment, or a medical condition. “We remain committed to helping struggling homeowners, and this program will provide additional assistance to states hit hardest by unemployment,” said Assistant Secretary for Financial Stability Herb Allison. “This is part of the Administration’s comprehensive housing policy that has helped to stabilize a fragile housing market and allows responsible homeowners the chance to reduce their monthly mortgage payments to affordable levels.”
President Obama first announced the Hardest Hit Fund in February 2010 to allow states hit hard by the economic downturn flexibility in determining how to design and implement programs to meet the local challenges homeowners in their state are facing. Under the additional assistance announced today, states eligible to receive support have all experienced an unemployment rate at or above the national average over the past 12 months. Each state will use the funds for targeted unemployment programs that provide temporary assistance to eligible homeowners to help them pay their mortgage loan while they seek re-employment, additional employment or undertake job training. States that do not currently have Hardest Hit Fund unemployment programs must submit proposals to Treasury by September 1, 2010 that, within established loan guidelines, meet the distinct needs of their state.
Low San Diego Mortgage Rates
Posted by: | CommentsSan Diego Mortgage Rates Decline!
The California home sales remain flat, but with sales prices down and San Diego mortgage rates at record lows, 2010 looks like a great year for buying a home in Southern California. For consumers interested in mortgage rates in San Diego, California you will be happy to know that California mortgage loan options are still very affordable. Below are the home mortgage rates as of 1:00 P.M. today in San Diego, California. The California mortgage rates on the 30-year fixed rate term ranges from 4.32% to 5%. For new Southern California home buyers you will be pleasantly surprised with the San Diego home loan opportunities.
| Lenders | APR | Rates |
| National Average | 4.894% | 4.75% |
| Wells Fargo | 4.848% | 4.75% |
| Nationwide Mortgage | 4.615% | 4.5% |
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For borrowers who have been waiting to refinance, our Nationwide Lenders strongly recommend converting any variable rate mortgages into a fixed rate mortgage while money is so discounted. |
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California loan applicants can choose between FHA, VA, conventional and jumbo home mortgage loans. California home loan rates fell again, marking the 7th straight week of record low interest rates. California VA home loans are available to eligible veterans at mortgage rates starting at 4.125%. California FHA loans are available to qualified loan applicants starting at 3.75% (5/1 ARM). There is no doubt that if you can qualify for mortgage loan that this is the best time to lock into a lowest 30-year mortgage rate.
5 Home Equity Loan Refinancing Tips
Posted by: | CommentsMany homeowners have accumulated a high rate home equity loan over the years and they need help finding a refinance loan solution. Home equity loan refinancing was much easier a few years ago, because there was so many second mortgage lenders ready to facilitate the refinance option. Since the subprime debacle and the housing crisis, homeowners have really had to do some researching to find a home equity refinancing solution. Nationwide has been originating home equity loan solutions for over a decade, so we understand the process of refinancing home equity loans very well.
Take advantage of the Home Equity Loan Refinance Tips listed below:
1. Keep Your Credit Score Above 680 – Do your best to keep your credit score above 700, but at least 680 because this will give you more home equity options.
2. Make Your Home Equity Loan Payments On Time – Home equity lenders want to see that you have a history of paying your equity loan without being late.
3. Get a Licensed Appraiser Who Knows Your Neighborhood – You want a licensed local appraiser to document your home improvement and maximize the value of your home.
4. Check with Your Home Equity Lender to See if They Will Convert Your Variable Credit Line to a Fixed Rate. – Most lenders have the ability to do a note modification that can specifically convert your adjustable rate home equity line of credit into a fixed rate home equity loan.
5. Consider Refinancing Your Home Equity Loan into a FHA Mortgage. – FHA lenders can approve rate and term refinancing to 96.5% and many homeowners have success refinancing their first and second mortgages together into one low monthly payment with a fixed interest rate.
Motivating First Time Homebuyers Beyond Low Mortgage Rates
Posted by: | CommentsFirst time homebuyers have not been rushing to become homeowners as they have years ago when home mortgage rates had dropped into the 4% range. The lack of home purchase loan activity has stumped many economists. Many mortgage insiders are astounded that 4% fixed rates are not enough of a motivation for first time home buyers. First time home buyer loan activity will rise when consumer confidence rises.
There are several factors that contribute to lack luster home loan activity in the summer of 2010. Yes the tax credit for first time homebuyers expired on April 30th. Sure that was a good incentive to drive first time homebuyers, but this is not the primary reason that home loan application volumes have been faltering the last few months. If Forrest Gump was hear, he might say, “It’ the loan guidelines stupid.” According to Ronnie Sullivan at the Mortgage Depot, “Mortgage lenders have tightened loan guidelines to the point where not that many consumers qualify anymore.” Sullivan continued, “borrowers need to be able to document their income and demonstrate that they have the ability to re-pay the mortgage loan.”
Notable Instances of Mortgage Lenders Tightening Guidelines
1. FHA increased down-payment requirements from 3% to 3.5%
2. FHA reduced the maximum loan-to-value on cash out refinancing from 95% to 85%
3. Most Mortgage Lenders Eliminated Stated Income Home Loans
4. Most Home Loan Lenders Eliminated Down-Payment Assistance Home Loans
5. Conventional Lenders No longer allow a 10 or 20% second mortgage to replace a down-payment & the need for mortgage insurance