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Hi, I'm Ethan Ewing, President of Bllls.com. With the announcement of improvements to the
Home Affordable Refinance Program or HARP, the government has made its most promising
effort to date to ease the financial burden on homeowner’s whose homes have lost significant
value over the last 4-5 years. As for eligibility, you are only eligible for a HARP refinance
if… One your current mortgage is owned or guaranteed by Freddie Mac or Fannie Mae and
you originally got it before June 1st, 2009. Two, you haven't already refinanced under
HARP in the past few years. Three, your current loan-to-value (LTV) is greater than 80% Fourth,
you are current on your mortgage at the time of the refinance, with no late payment in
the past six months and no more than one late payment of 30 days or less in the past 12
months. Anywhere from 1-5 Million loans are expected to be refinanced through the new
HARP, and here are five things that you should know about HARP and how it will help you.
Now first, there is no longer a maximum loan-to-value limit. No matter how far underwater you are
or your house is you can still refinance, if you meet the eligibility criteria. Note
that this only applies if your new HARP loan is a fixed rate. If you choose an adjustable
rate the program guidelines get a little bit tighter. So where possible and in most cases
you should be able to do it, go with a fixed rate. Now second, in most cases, an actual
appraisal is NOT needed. Another one, these first two are HUGE. Lenders will still run
a report to get an estimated value of your home, but there is no charge for this to you,
which is great you save a few hundred bucks and it can be done instantly. Now third, lenders
will be more flexible and more willing to promote these programs. Lenders are motivated
to make loans. The whole process has really been greased nicely to work for you. Make
sure to negotiate with multiple lenders. It really is still important to shop around.
Now the Fourth thing, lower fees. Loans will be cheaper as a lot of these big fees that
were charged by Fannie and Freddie for this HARP program are going away. Now fifth, think
short term. If you can get in to a shorter term loan, do it. The program was designed
by the government to help homeowners reduce payments AND importantly pay down their loan
balances more quickly. To help people rebuild their equity. Now, don't panic if you are
currently late on your mortgage. HARP will run through December, 2013, so you have time
to catch up on your mortgage and qualify for a HARP loan. You may be able to submit an
HARP loan application as soon as December. And that’s when you should start shopping
for your new loan. Use our online mortgage shopping engine it’s a great platform, you
will find the link below, to find the best loans that you actually qualify for, provided
by lenders from our network of over 150 national banks.
Thanks for watching us here at Bills.com, where we are helping people save money every
day!