www.lasvegasmtg.com report: HARP 2.0 for Las Vegas, Nevada
By John Le Francois
www.lasvegasmtg.com report: HARP 2.0 for Las Vegas, Nevada as reported in an earlier article HARP 2.0 has created a large interests from borrowers that were shut out of refinancing to lower rates due the home in Las Vegas, Nevada being underwater. While HARP 2.0 was originally approved last year it was not available until this April, 2012 due to Fannie Mae and Freddie MAC updating software to allow for the PIW which stands for Property Inspection Waiver. When HARP 2.0 or the Expanded Home Affordable Refinance Program became available there were few investors that were willing to take the added risk of taking on underwater mortgages. There was little competition and rates were a little higher then a normal conventional loan. Recently that has changed and we now have 3 new investors within the last two weeks Fannie Mae.
While this is a good news for borrowers if their loan is being serviced by Fannie Mae, it is just the opposite for Freddie MAC with only one investor doing unlimited Loan to Value. Freddie MAC has also limited the amount of the closing cost that can be include with the principal payoff to $5,000 which has to include origination, processing, underwriting, title fees and the last 30 days of interest that will be required to be paid to the old servicer.
Examples of current borrowers savings:
1. Condo balance owed is $140,000 at 6.75% for 30 years with a value at $85,000 and the borrower has paid on the property for 6 years. New loan at 4.00% for 15 year loan and is only paying $19 more per month the the previous 30 year mortgage. This allows the borrower to shave 9 years of the loan and to quickly to build equity that was not possible before.
2. Single Family Home balanced owed $449,000 with 6.75% for 30 years and have paid on the loan for 4 years with a value at $290,000. New loan for 30 years at 4.25% will save $704.00 a month.
3. Single Family home balanced owed is $268,500 at 6.25% for 30 years and paid for 4 years. New loan 4.5% for 30 years will save $293.00 a month.
If you think your loan is with Fannie Mae or Freddie Mac feel free to talk with my associate Kenny Salame or myself to see what your loan options are. We are a full service lender that provides the following loans: FHA Las Vegas Home Loans, VA Las Vegas Home Loans, HECM Las Vegas Home Loans, Portfolio Las Vegas Home Loans, Conventional Las Vegas Home Loans and HARP 2.0 Las Vegas Home Loans. To get a personal reply for HARP 2.0 scenario click here. For more information on purchases click here.