Breaking News Loan up to 125% on the HARP or Home Affordable program set to expire June 2011

H.A.R.P. Home Affordable Program

The Home Affordable Program is designed for homeowners who pay their mortgage on time but are not able to refinance because they have little or no equity in their home. But hurry this program is set to expire and many lenders do not understand the program or are too busy with the REFI boom to help you close your loan.

We understand and can help see ATLrates.com or call 770-792-7979  or  Outside Atlanta call 1-800-792-0068

You must meet the following criteria to qualify for the Home Affordable Program:

1. Your current loan must have been sold to Fannie Mae or Freddie Mac.  To find out, contact your current loan servicer or visit: http://www.makinghomeaffordable.gov/loan_lookup.html
   
   
2. During the last 12 months, all of your mortgage payments must have been made within 30 days of the due date.
   
   
3. Your new loan amount may not exceed 125% of the current appraised value of your home. 

To view rates and obtain a good faith estimate for a Home Affordable refinance with ATLRATES.com.


Frequently Asked Questions

If I have a first and a second mortgage, do I still qualify?

As long as the balance due on the first mortgage is less than 125% of the value of the home, you may qualify.  The lender on the second would have to agree to subordinate their loan to the new first mortgage, thereby remaining in second position.

Can I get cash out to pay off debts?

No.  However, provided the new loan amount will not exceed 125% of the value of the home, you may include all closing costs in the new loan so you don’t have to come out of pocket with any cash.

If I’m delinquent on my mortgage, will I still qualify?

No.  Borrowers who are currently delinquent on their mortgage should contact their current lender/servicer and ask about a loan modification.

Will I need mortgage insurance?

If your existing loan does not have Private Mortgage Insurance (PMI), it will not be required as part of your HARP refinance either. If your existing loan has PMI, your HARP refinance will also require it. PMI for this program will only be available through your existing PMI company.

Below are the HARP PMI guidelines of the major PMI companies:

HARP REFINANCE PMI GUIDELINES
Existing PMI Company	Refinance with New Lender	Refinance with Existing Lender
Genworth (Formerly GEMICO)	Max 105% LTV	Max 125% LTV
	45% Max DTI	Per AUS Approval
	New Premium	Same Premium
MGIC	Max 105% LTV	Max 125% LTV
	45% Max DTI	Per AUS Approval
	Same Premium	Same Premium
	.5% Upfront Fee
PMI	Max 125% LTV	Max 125% LTV
	Per AUS Approval	Per AUS Approval
	Same Premium	Same Premium
Radian	Max 105% LTV	Max 125% LTV
	45% Max DTI	Per AUS Approval
	New Premium	Same Premium
UGI	Not Available	Max 125% LTV
		55% Max DTI
		Same Premium
RMIC	Max 105% LTV	Max 125% LTV
	55% Max DTI (41% if Mtg payment increases)	No DTI Requirement
	New Premium	Same Premium

How long will the Home Affordable Program be available?

The program expires on June 30, 2011. Your refinance transaction must be closed and funded on or before that date.

Applying For A Mortgage Soon? Don't Open New Credit Cards On Black Friday.

Black Friday is 3 days away. It's the official start of the 2010 Holiday Shopping Season.

Sales are expected to top $111 billion this year and, already, businesses are vying for shoppers and their dollars. Newspaper circulars are getting larger, and in-store discounting is more prevalent.

But one discount that shoppers should think twice about is the popular "Open A Charge Card, Save 20%" promotion. The short-term savings may be tempting, but the long-term costs may be huge.

It's because of how credit scores work.

According to myFICO.com, "new credit" accounts for 85 out of 850 possible credit scoring points, with new credit defined by such traits as:

• Number of recently opened accounts
• Number of recent credit inquiries
• Time since recent credit inquiries
• Proportion of new accounts to all accounts

These traits are negatives against a FICO score so with each new, in-store credit card application, a person's credit score will fall. The fall will be especially pronounced for persons lacking credit "depth", or who have made a disproportionately large number of new credit applications recently.

For soon-to-be homeowners, or would-be refinancers in Kennesaw , credit scores are worth keeping high. This is because credit scores change the mortgage rates and/or loan fees for which an applicant is eligible.

As an illustration, assuming 20% equity on a $200,000 conforming loan:

• 740 FICO : No added loan costs
• 720 FICO : 0.250% increase in loan costs, or $500
• 700 FICO : 0.750% increase in loan costs, or $1,500
• 680 FICO : 1.500% increase in loan costs, or $3,000
• 660 FICO : 2.500% increase in loan costs, or $5,000

 

It's expensive to have a low credit score -- more expensive than the money saved by opening a card at the mall, anyway.

That said, if you know you won't need your credit for a mortgage within the next 6 months, the risk of applying for in-store credit cards is likely small. But if you'll need your FICO soon, consider paying for your gifts full price.