Lenders are beginning to accept applications under the new HARP 2 rules – there is no loan-to-value limit on HARP refis for borrowers who have fixed-rate mortgages (if you are underwater this is GREAT news).

Here is a brief overview of HARP 2’s guidelines:

· 1. The program is for borrowers whose mortgages are owned by Fannie Mae or Freddie Mac, and who got their loans before May 2009.

· 2. HARP had been scheduled to expire at the end June 2012; HARP 2 extends the expiration to the end of 2013.

· 3. There is no loan-to-value cap anymore for borrowers who now have fixed-rate mortgages.

· 4. For borrowers with ARMs, the loan-to-value cap remains 105 percent.

· 5. Borrowers can qualify for HARP 2 refis if they have paid on time for the last six months and have no more than one 30-day late payment in the last 12 months.

· 6. Fees have been reduced. Under HARP 2, the fees are reduced to zero percent on loans for 20 years or fewer, and 0.75 percent for mortgages for more than 20 years and for ARMs.

I wanted to remind everyone about our current refinance fund raiser for VW and the Dad’s club. For the month of February, I will donate $250 in the name of the family refinancing with me to the non-profit of their choice. $250 went to the Dad’s club this week in honor of a local VW Family, the Dad’s club and all thank you!

Please give me a call if you have any questions or if I can help with your financing needs!

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