Tag Archives: mortgage help

HARP (Home affordable refinance program) extended to Dec 2018

HARP, or the Home Affordable Refinance Program, is a great way to refinance your mortgage and save a ton of money in interest charges.

HARP allows homeowners who have little or no equity in their homes to refinance their mortgages and get lower interest rates. You can even refinance if your mortgage is upside down.

The program was due to expire in September, but it has been extended through December 2018, adding 15 months to this popular initiative.

The 2008 housing crisis left many homeowners owing more on their mortgages than their homes were worth. The rate of foreclosures rose 81 percent in 2008 alone and more than 860,000 homeowners lost their homes.

read more at: http://www.bnd.com/news/business/article169036887.html

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New Tool to shop for mortgage

First, some background. In October, the Consumer Financial Protection Bureau, or CFPB, launched its ambitious package of new disclosures and rules governing home-mortgage transactions as part of its “Know Before You Owe” campaign. The Loan Estimate is the upfront piece — lenders must provide it three business days after you apply — and it replaces the traditional Good Faith Estimate and Truth in Lending disclosures.

In three pages, it provides you an in-depth scan of the mortgage you’re considering: It details not only the mechanics of the loan — interest rate, annual percentage rate, monthly principal-and-interest payments, property taxes, insurance and other escrow items — but also the itemized charges you’ll be hit with and the amount of cash you’ll need to close the transaction. Better yet, you can pretty much depend on the cost disclosures as the final ones you’ll pay, because lenders face massive financial penalties if they play games and charge you more at closing. Under the previous system of disclosures, you couldn’t be certain about your final expenses, and the Good Faith Estimate didn’t even tell you how much you’d need for closing.

Under the CFPB’s rules, after you receive your Loan Estimate you have 10 days to shop the competition before agreeing to the deal or ditching it. The bureau recommends that borrowers obtain a Loan Estimate “from three or more lenders” before making a final choice. Sounds sensible, but are buyers actually doing that?

read more at: https://www.washingtonpost.com/realestate/home-buyers-dont-seem-to-be-using-new-tool-to-shop-for-mortgages/2016/01/11/f174ccbc-b87f-11e5-99f3-184bc379b12d_story.html


Fed Homeowner Aid Program Rejects 70% of Applicants

Seven in 10 homeowners who apply for help under the federal government’s signature mortgage aid program are rejected, according to a government report released Wednesday.

The program, called the Home Affordable Modification Program, is meant to help homeowners who are at risk of foreclosure stay in their homes by reducing their monthly mortgage. Since it began in 2009, 5.7 million homeowners have applied for assistance and 4 million have been rejected, according to data provided by the Treasury Department to the Special Inspector General for the Troubled Asset Relief Program.

Under HAMP, homeowners who are struggling to pay their mortgage apply for a modification that will lower their monthly bill. That application is reviewed by the mortgage servicer, who runs a standardized calculation to determine if they will receive more money from the homeowner at the current payment level, or with a reduced monthly payment. (Think about how much a lender would receive, in total, if a borrower paid a mortgage of $1,000 for three months and then stopped making payments and the house was foreclosed on, compared to a borrower making $600 payments until the loan was fully paid off.) If the servicer will get more money in the long run by collecting less each month, and the homeowner meets other guidelines — such as that they live in the home and took the mortgage out before 2009 — they are supposed to be approved under Treasury guidelines. Mortgage servicers are required to follow these guidelines.

read more: http://www.huffingtonpost.com/entry/homeowner-aid-program-rejected-applicants_55b8e0fce4b0224d883490b6?

disclaimer: for information and entertainment purposes only