We have a months worth of data to share after the March 19th HARP 2.0 changes were introduced.
♦ It was speculated that the Loan to Value (LTV) would have no cap, the reality is that you can now finance up to 150% of the value of your home. This is an increase from the previous cap of 125%.
- Keep in mind that there are some factors that effect Condominiums and Adjustable Rate Mortgages (ARMs).
♦ If you have a 2nd mortgage, don’t worry! We have lenders that do NOT care about the total overall LTV.
♦ 80% of the applications we have run though the Automated Underwriting process have NOT required an Appraisal.
♦ Investment properties are now eligible for the HARP program.
Like most government initiated programs, there is a difference between the initial concept and the reality. However the positives significantly outweigh the negatives in this program.
We also continue to hear stories of other banks taking months to get loans closed. The refinance process is now taking us about 45 days from start to finish.
Please forward or share this to anyone you know who may benefit from this information, and give us a call so we can walk you through it and answer any questions!
Posts tagged HOME LOANS
HARP 2.0 Improvements!!!!
Big Banks VS Mortgage Brokers 2
We talked in a recent video about the difference between Big Banks and your local, friendly Mortgage Broker. These Big Banks are going to ramp up their marketing efforts to retain you as clients as the HARP Revisions take place March 17th.
Here are a few things for you to be prepared for as they solicit you or if you call them:
- On-Hold Time can be excruciating – One of our clients waited over an hour
- Interest Rates with the Banks are substantially higher than what we are offering
- Big Banks claim with them, “The Process will be EASY“
Moral of the story is that there are only a few scenarios where your current mortgage company may be the right choice. Give us a call or forward this to others you know are interested in refinancing. We can get you answers accurately and quickly.
Fannie/Freddie Industry Forecasts
For the 1st time in over a year, both Fannie Mae’s and Freddie Mac’s forecast are the same! Both predict that:
- Purchase activity will be similar to 2nd half of 2011 – Stable is good
- Property values are expected to hold steady for the year – No Declines!
- Rates will remain at very low levels for 1st half of 2012
- Refinances will consume 85%-90% of Mortgage applications through June
What this means to the Realtor Community:
- Put yourself first, if you have not refinanced – now is the time!
- Lenders will be consumed by administering all the HARP program changes
- Loan Originators will be fired up to write refinance loans
- Only 20% of Purchase leads have a chance to materialize into a closing due to limited inventory
- 40% of Refinance Leads turn into done deals
We also came across some local Realtor production numbers for 2011. Out of 2000 local area agents, we found:
- Average sale volume – $3.6 Million – 30 Transactions
- Median (middle) sale volume – $2.5 Million – 20 Transactions
Our Question to you – Do you believe 2012 will be better or equal to 2011?
PLEASE Comment below and share your thoughts as we love to hear from our business partners and learn valuable insight into our market.
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