The mortgage loan business in Memphis and every city around the nation is about to go into high gear with record numbers of mortgage loan refinances.
The government on Monday October 24, 2011 announced a federal loan program that will make it easier for struggling homeowners to refinance to today’s near-record low rates. The revised Home Affordable Refinance Program will not require an appraisal. The final guidelines for this program will be released on November 15, 2011 and the program goes into effect December 1, 2011.
Homeowners who refinance into 30-year mortgages will pay some fees even though the costs on the new HARP program will be lower than the current risk-based fees. For borrowers who refinance into shorter term mortgages of 20 years or less, all risk-based originations fees will be waived.
Here are some of the stipulations:
(1) The mortgage being refinanced under the new HARP program must be owned by Fannie Mae or Freddie Mac.
(2) The mortgage must have been sold to Fannie Mae or Freddie Mac BEFORE May 31, 2009.
(3) The mortgage must not have been refinanced within the last 2.5 years.
(4) The homeowner must be current on the payments with no more than one payment over 30 days late in the last 6 months and no more than 2 payments over 30 days late in the last 12 months.
Jo Garner and Susan Belew and their team are gearing up to help their customers get ahead of the herd by getting the customers’ loan applications completed BEFORE November 15, 2011 when the regulations will be released. Once the mortgage team determines that the homeowner is qualified for the loan under the final loan regulations, then the customer can lock in terms and begin the process to closing.
Jo Garner, Mortgage Officer (901) 482-0354 www.MoneyShoppe.NET
For more information about mortgage loan refinances in the Memphis area and around the nation, contact Jo Garner.