HARP 2.0 is here and is making a positive impact. Homeowner’s now may be able refinance and improve their financial position. What you need to know about HARP 2.0 is that even if you have PMI you may be able to refinance your loan — this was one of the major negative hurdles of HARP 1.0. Now, with this improvement in product guidelines more people will be able to take advantage of the current rate environment.
The situation in Europe is helping fuel fears and send money into Treasuries, but don’t be fooled, rates can and will move quickly. Even if you’re not ready to lock you may want to submit your file and keep your finger on the lock trigger. As many “big” banks are taking up to 90 days to close a loan, we can still do it under 30 days. Another improvement with 2.0 is the ability to ignore conventional LTV guidelines (LTV means loan-to-value). With HARP 2.0 there is the potential to be upside down an unlimited amount.
For example, you could have a mortgage of $300,000 with a home value of $200,000. Moreover, it is OK for both your primary residence, a second home or even an investment property. This might be the last time you refinance in a long, long time so if you’ve got questions please call to discuss your personal situation and perhaps we can help you find a solution!