Hello and Welcome back to Good News Friday! Today is Friday April 10, 2009. My name
is Bruce Karasik.
The Good News Friday Podcast is back and so each week we will bring you good news and positive developments in the Real Estate Market, Mortgage Market, in our economy and our country. If you miss any podcast, we have archived all or our past shows so you can listen to them at any time by going to www.goodnewsfriday.com. This week I want to talk with you about Homeowner Affordability and Stability Plan (HASP). If you or someone you care about is upside down on their home and you don’t know what to do, you really need to listen to this weeks podcast.
The new $275 Billion Homeowner rescue plan, HASP has three main avenues to prevent foreclosures. Today we are going to talk about just one aspect of the plan, The Streamlined Refinance Mortgage Product. Beginning this month April 2009, the government will make refinancing easier for many borrowers who are current on their mortgages, yet unable to refinance their loans due low or no equity. Under current loan guidelines, borrowers were unable to take advantage of today’s low rates, and are may be trapped in loans with higher fixed rates or adjustable rates, and high payments. This part of the Plan is meant to aid “millions of responsible homeowners who put money down and made their mortgage payments on time” and “have – through no fault of their own – seen the value of their homes drop low enough to make them unable to access these lower rates.” Most borrowers refinancing an existing Fannie Mae loan will not be required to buy new or additional mortgage insurance if the loan at the time of the refinance is more than 80 percent of a home's value. Any existing mortgage insurance may be carried forward to the new loan. But here is the best part, borrowers can refinance loans up to 105 percent of a home's value with this new flexibility, so even borrowers who are "underwater" -- who owe more than their home is worth -- may be able to refinance. This will expand the number of borrowers able to take advantage of lower interest rates that reduce monthly payments, or refinance into a more sustainable mortgage.
What Do Borrowers Need to Know:
- To qualify, your mortgage loan must be owned by Fannie Mae.
- You must have a solid payment history on your existing mortgage.
- The expanded refinance flexibility end June 2010
The government estimates that 4 to 5 million borrowers will be eligible.
T· The refinance loans will have 15 or 30 year fixed rates. The rates and fees will be those available in the market at the time of the refinance.
· T The new first mortgage, including any financed closing costs, cannot exceed 105% of the value of the home. Property values will be determined after the application is submitted to the lender.
B· Borrowers will have to provide income documentation to qualify for the new loans.
H Homeowners with second mortgages will be eligible for a refinance, if the second mortgage lender agrees to remain in second position to the new loan.
Th This plan is very new and many details are still unfolding, I will keep you updated in future podcasts as more details become available. So if you or someone you care about is upside down in their home and don’t know what to do, have them get in touch with me.
Now more than ever it is important to
contact a real professional to get the best advice. So call me or email and I will be happy to talk with you
about the most current information about the Real Estate and Mortgage market
and how it can affect you. Our goal is to save you money when you buy your home
this year or refinance at the new lower rates.
The key to success is having the right
advisors and consultants in place so you can have the right strategy. As your trusted Real Estate consultants
and advisors, we at the Karasik Team work in our unique ability. My unique ability is consulting,
negotiating and overseeing the transaction details. We take a customized approach and enable our clients to make
informed decisions to accumulate wealth through Real Estate. In addition, we at
Karasik and Associates, Mortgage Consultants, can help you come up with a
strategy to determine whether this is the right time for you to buy your first
home or to refinance your existing home.
We
continue to believe that homeownership will remain the best avenue for American
families to secure their financial future. I look forward to our continuing
dialog and we invite your feedback. Please feel free to email me at Bruce@TheKarasikTeam.com,
call me at my office at 805-267-0366, or you can post your responses on our
blog at www.GoodNewsFriday.com.
So we do have some good news to be grateful
for. And so, my friends, I wish
you and your families a Happy, Healthy, and Prosperous week. And that’s it for now. I’ll see you back here next week for
another episode of Good News Friday!
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