To all Veterans and your families - thank you. Thank you for your dedication to support and defend this great country, to keep us free from the threats around the world that threaten our freedoms we enjoy every day but take for granite, and thank you for your families support and the sacrifices they make everyday as well.
Thank a Veteran and thier families today. Tell them how much you apprecaite what they do.
Tim
It’s official. The Federal Housing Finance Agency (FHFA) unveiled a new, revamped government mortgage refinancing program Monday.
The initiative involves a series of rule changes to the Home Affordable Refinance Program (HARP) to allow more underwater homeowners to reduce their mortgage debt by taking advantage of today’s rock-bottom interest rates.
Mortgages backed by Fannie Mae and Freddie Mac, and originally sold to the GSEs on or before May 31, 2009 are eligible for the program.
Under the revised HARP guidelines, the 125 percent loan-to-value (LTV) ceiling has been eliminated. Previously, only borrowers who owed up to 25 percent more than their home was worth could participate in HARP. That limitation has now been removed. The program will continue to be available to borrowers with LTV ratios above 80 percent.
The new program enhancements address several other key aspects of HARP that industry participants say have restricted its impact, including eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers, as well as allowing mortgage insurers to automatically transfer coverage from the original loan to the new loan.
In addition, Fannie Mae and Freddie Mac have done away with the requirement for a new property appraisal where there is a reliable AVM (automated valuation model) estimate already provided by the GSEs, and they’ve agreed to waive certain representations and warranties on loans refinanced through the program.
Not only are loans eligible for HARP considered “seasoned loans,” but a refinance helps borrowers strengthen their household finances, reducing the risk they pose to the GSEs. Thus, FHFA feels reps and warranties are not necessary for some of these loans.
With Monday’s announcement, the end date for HARP has been extended from June 30, 2012 to December 31, 2013.
The GSEs will release program instructions to lenders by the middle of next month, and FHFA expects some lenders will be ready to accept applications by December 1.
Since HARP was rolled out in early 2009, approximately 1 million homeowners have refinanced their mortgage loans through the program. FHFA estimates that with the revised guidelines, another 1 million will be able to take advantage of the program.
To qualify, borrowers must be current on their mortgage payments, but government officials believe by opening HARP up to more homeowners with higher thresholds of negative equity, it will help to prevent foreclosures by erasing the primary motivation behind strategic defaults.
Economists at the University of Chicago Booth School of Business estimate that roughly 35 percent of mortgage defaults are strategic. Numerous industry studies have found that homeowners who owe significantly more than their home is worth are more likely to throw in the towel and walk away from their mortgage debt even if they have the ability to continue making their payments.
“We anticipate that the package of improvements being made to HARP will reduce the Enterprises credit risk, bring greater stability to mortgage markets, and reduce foreclosure risks,” FHFA stated in its announcement Monday.
Fannie Mae and Freddie Mac also released statements in response to the announcement.
Michael J. Williams, Fannie Mae’s president and CEO, called the program a “welcome development.”
“By removing some of the impediments to refinance, lenders can more easily participate in the program allowing more eligible homeowners to take advantage of the low interest rates,” Williams stated.
Charles E. Haldeman, Jr., CEO of Freddie Mac said, “These changes mark another step on the road to recovery for the nation’s housing market.”
If you need my help please let me know. Yes, "we do buy houses". Come see us.
Tim Cook
www.SellYourDFWHouse.com
817-550-5069 24/7
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NORTH TEXAS HOME SALES DECLINE CONTINUES
FORT WORTH (Fort Worth Star-Telegram) – Prices on existing North Texas single-family homes were up in February, but sales were down for the ninth consecutive month.
Just over 3,500 homes were sold in the 29-county North Texas region last month, a 17 percent drop from February 2010, the Fort Worth Star-Telegram reported yesterday.
Sales declines of more than 50 percent were seen in some areas of Arlington and Fort Worth. In Tarrant County, the submarkets of Kennedale, central west Fort Worth near Texas Christian University, and Haltom City saw gains.
A total of 6,676 homes have been sold in North Texas so far this year. That's 13 percent fewer than the same period a year ago.
The median sales price was up 4 percent to $145,000 last month. Nearly 25 percent of the homes sold cost between $200,000 and $400,000. About 1 percent cost $1 million or more.
NOTE: What I find interesting is that both Dallas and Fort Worth sales are down. Click the above link for details. For sellers who need to sell quickly listing your house may not be the best answer, especially if you are paying two payments. Longer sales times equates to increased holding costs i.e. more mortgage payments, higher risk of something happening to the house, increased maintenance, taxes and insurance, etc.
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