Orange County, California homeowners who have not been able to refinance up until now because of low property values may be pleasantly surprised to learn about HARP 2.0. The Home Affordable Refinance Program, also known as HARP has been around for a few years. But with new upgrades to the program, more people will be able to benefit than ever.
Refinance Orange County Condo with HARP
Previous versions of HARP capped the amount of “negative equity” a borrower could have at 105% an 125% loan to value. HARP 2.0 now allows ANY loan to value. This means that if a homeowner bought a condo, for example in Laguna Niguel or Aliso Viejo, for $500,000 with a $400,000 loan, and now the condo is worth less than $300,000 (there are area of Orange County, especially with certain condo complexes where this happened), they can still refinance. Even better, the homeowner doesn’t need to still live in the home. It can be a rental. As long as payments are being made on time and the borrower qualifies, they will be able to refinance into a very low interest rate.
Not everyone who is upside down on their mortgage will qualify. The most important rule is that the loan needs to be owned by either Fannie Mae or Freddie Mac. Generally, Fannie Mae and Freddie Mac were not doing Stated Income or No Documentation loans. So an Orange County homeowner who bought their home with a Stated Income loan in 2007 probably does not have a Fannie Mae or Freddie Mac owned loan. Also, neither Fannie nor Freddie ever did negatively amortizing loans. So if you started with a 1% interest rate, and your loan amount went up rather than down, then you most likely do not have a Fannie Mae or Freddie Mac loan.
How Do I Figure out if my Orange County loan is Fannie Mae or Freddie Mac?
Orange County homeowners can go to the Fannie Mae Lookup site or the Freddie Mac Lookup Site. By entering in basic property information, you will be able to determine whether your loan is owned by Fannie Mae or Freddie Mac. You an also contact a local Orange County HARP loan officer who can quickly check your loan ownership. If it turns out you do qualify, the loan officer should also be able to prepare a Side by Side analysis of your current loan as it compares to a new HARP 2.0 refinance. You will be able to refinance into either a 30 year fixed, or choose a shorter term. Many homeowners are finding that although they won’t achieve a lower monthly payment by choosing a 20 year or 15 year fixed program, the interest rate is so low, especially on the 15 year fixed, that the actual interest savings over the life of the loan are too much to pass up. Having your home paid off in 15 years, especially if you are hoping to retire in 15 years, is a great way to go.
Authored by Tim Storm, an Orange County, CA HARP Refinance Loan Officer MLO 223456– Please contact my office at Home Point Financial for more information about an Orange County, CA Mortgage. 949-829-1846. www.OCHomeBuyerLoans.com
Contact us for your Orange County HARP Refinance:
949-829-1846 | tstorm (at) ochomebuyerloans.com