Interest rates have been strong all year, last week however, we saw mortgage backed securities rally each day and with the release of unemployment figures on Friday we are now officially sitting at historic lows! If you have not taken advantage of these rates…what are you waiting for? Maybe you have been told that you don’t have enough equity in your home due to the housing market trending down over the past few years?
Well there is something here for you too! The Home Affordable Refinance Program (HARP) is a program developed by Fannie Mae and Freddie Mac that helps folks with little or no equity in their homes take advantage of today’s fantastic mortgage rates.
If you have an FHA loan there is a new government program released on June 11th that will not only drop the rate into the 3-percent range but will also reduce the required Mortgage Insurance Premium (MIP) that HUD requires on most loans. The low mortgage rates couple with this reduced MIP for FHA insured loans makes it a great time to refinance your FHA Mortgage. This is truly a streamlined process and can be done with limited documentation unlike the normal loan application process. In most cases HUD will not require an appraisal or verify value, review income and this can be done with little or even no closing costs! On a $150,000 loan this MIP amount has dropped from $2,625 to just $15… that is not a typo…$15!
Check-out this 3 minute video blog on this program.
There has never been a better time to refinance and although underwriting guidelines have been restricted over the past few years we are starting to see new programs that will help folks who are paying their mortgage and debt on a timely basis.
Renters! What are you waiting for? It is officially cheaper to buy a home than to rent it! Housing affordability is at its lowest since the early 1970’s…that’s pre-disco!
Coupled with these low mortgage rates…it’s a great time to be a buyer!
There are also first time home buyer grant money that can help you tap into government funds for down-payment and closing costs assistance. These funds are issued on a first-come-first-serve basis and range from $3,000 to $10,000 depending on the County or City.
It has never been a better time to take advantage of today’s great rates…so if you are refinancing, buying another home or your first home, let me use a phase from Nike…”just do it”.
About the Author:
Peter Wright (NMLS 493721) is the Senior Vice President of Essex Residential Mortgage.Peter can be reached by phone at (314) 722-2332 or on his cell phone at (314) 753-7155 by email at pwright@erezllc.com or you can visit his website at RoosterReview.com.
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