Making Home Affordable Program is now Extended Through 2015!

Good news to start off your week: the Obama Administration's Making Home Affordable program has now been extended through December 31, 2015!  This was just announced by the Department of the Treasury and the Department of Housing and Urban Development (HUD) in association with the Federal Housing Finance Agency (FHFA). The goal was to align the deadline with that of the Home Affordable Refinance Program (HARP) as well as the Streamlined Modification Initiative for those with loans with Fannie Mae and Freddie Mac.

The Obama Administration has been working hard to provide relief to families on the brink of foreclosure. The Making Home Affordable Program has been an integral part of the housing market recovery. This two year extension of the deadline should further aid those affected by the housing crisis.

“The housing market is gaining steam, but many homeowners are still struggling,” said Treasury Secretary Jacob J. Lew. “Helping responsible homeowners avoid foreclosure is part of our wide-ranging efforts to strengthen the middle class, and Making Home Affordable offers homeowners some of the deepest and most dependable assistance available to prevent foreclosure. Extending the program for two years will benefit many additional families while maintaining clear standards and accountability for an important part of the mortgage industry.”

Originally launched in March 2009, this program has been able to help nearly 1.3 million homeowners. Another part of the Making Home Affordable Program is the Home Affordable Modification Program (HAMP) which works much like a refinance. Homeowners are able to modify the terms of their current mortgage and reduce their monthly payment in the hopes of avoiding foreclosure. More than 1.1 million homeowners have taken advantage of HAMP. Because of these modifications, the median savings is $546 per month! Would you like to save 38% of your previous payment?

“The Making Home Affordable Program has provided help and hope to America’s homeowners," said HUD Secretary Shaun Donovan. "Families across the country have used its tools to reduce their principal, modify their mortgages, fight off foreclosure and stay in their homes - helping further stimulate our housing market recovery. And with this extension, we ensure that the program keeps supporting communities for years to come.”

In addition to saving money, there are also new standards set in motion for the mortgage servicing industry that protect homeowners. Better communication, more efficient timing, and superior assistance are now expected to be norm for all lenders.  With the recent crack down on mortgage fraud, qualifications for a loan are more strict and monitored, but this is good for the borrower.

Now that the deadline for this great program is extended, struggling borrowers will find it easier to pay their mortgage payments and the number of foreclosures should decrease over time. If you feel like you are unable to pay your mortgage, please learn more about these assistance programs! There is no need for anyone to lose their home!

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HARP Benefits Underwater Borrowers

Since HARP began in April 2009, more than 2.2 million homeowners have refinanced. In January 2013, there were roughly 97,600 HARP refinances, which shows that HARP continues to be a benefit to underwater borrowers. 25% of the loans refinanced through HARP had a loan-to-value ratio greater than 125%. Also, 18% of HARP refinances for underwater borrowers were for shorter-term mortgages such as 15 or 20 years, which would help build equity faster than a traditional 30-year mortgage.

This information comes from the FHFA's January 2013 Refinance Report which suggests a high refinance volume with nearly 470,000 refinances completed in January, including the HARP ones.

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"The Responsible Homeowner Refinancing Act of 2013"

How would you like to be among the millions of responsible homeowners who can refinance their mortgages at a lower rate in order to save thousands of dollars each year? It's within your reach! Especially now that U.S. Senators Robert Menendez (D-NJ) and Barbara Boxer (D-CA) have introduced this legislation in the 112th Congress. It is called "The Responsible Homeowner Refinancing Act of 2013" and it plans to remove the barriers that are currently preventing borrowers from obtaining the lowest rate possible.

This bill would streamline refinancing as we know it for all of Fannie Mae and Freddie Mac's borrowers whether they are underwater or not. Up-front fees would be reduced, appraisal costs for borrowers would be eliminated, and the HARP program would be extended by one year to allow eligible borrowers to take advantage of it.

"We need to bring much-needed relief now to hard working, responsible homeowners who are struggling to keep up with their high interest rate loans" said Sen. Menendez. “We need to do this before interest rates go up again. It’s time that Congress finally put families first and give homeowners who have played by the rules a fair chance to refinance at today’s low rates."

He also adds that this will be done at no cost to taxpayers and that it is intended to stimulate the economy. It has been referred to as a "No-Brainer".

According to Senator Boxer, "this bill is a win-win!" She goes on to say, “Homeowners will have more money in their pockets, Fannie and Freddie will see fewer foreclosures, and the housing market and economy will continue building momentum. That’s why the Menendez-Boxer bill has such broad support from industry and consumer groups. We should take action on this common-sense plan immediately while interest rates remain low so American families can realize major savings.”

With the recent record-low rates for a 30-year mortgage averaging around 3.53%, you could be one of the nearly 12 million homeowners guaranteed by Fannie Mae and Freddie Mac who could refinance! There are many who are not currently able to refinance because of policies and high fees, but if the Menendez-Boxer bill goes into effect, all that red tape would be gone!  In fact, through HARP, the average homeowner saves $2,500 per year as it currently is. The bill plans on increasing that amount by expanding refinancing opportunities for all those who are eligible.

If you are ready to take advantage of the current low rates, find out if you are qualified for a loan now! Call Quest Loans at 888-883-5252 to find out when it is the right time for you to refinance! We will answer all your questions!

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HARP Loans Make Up 25% of Loans in Q3

Did you know that Quest Loans specializes in Home Affordable Refinance Program (HARP) loans? And did you know that in the 3rd quarter of 2012 that nearly one-quarter of all refinances were through HARP? That's right! More than 90,000 homeowners have refinanced their current mortgages with HARP in that time period. The high amount of HARP refinances is largely because of the record low mortgage rates!

Did you know:

• Since HARP began in 2009, Fannie Mae and Freddie Mac have financed more than 1.7 million loans!
• Half of all HARP loans in September 2012 had loan-to-value (LTV) ratios greater than 105% and one-fourth had LTVs greater than 125%
• 19% of HARP refinances for underwater borrowers were for sorter-term mortgages which builds equity faster

If you are thinking about refinancing your home soon, don't hesitate! Quest Loans can help you get the process started right away! Call us at 888-883-5252

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Number of Home Sales Rises in October

Compared to last year, the month of October saw a 17.8% rise in home sales. This means that more people are buying homes and taking advantage of the low interest rates!

Also, the Median Home Price has gone up, meaning that you could potentially sell your home for a higher amount than you could in previous months.

If you are looking to buy a home, the overall inventory of available houses is declining so it may be harder to find the perfect home for your family. However, if you do find a suitable candidate, the low interest rates are in your favor!

If you find that these statistics are pleasing to your pocketbook, don't hesitate! We'd love to help you start the loan application right away.

Keep in mind that Quest Loans specializes in HARP and FHA loans, as well as refinancing! Give us a call today! 888-883-5252

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HARPs New Guidelines for Homeowners to Refinance

Good news for homeowners from the federal government! The Home Affordable Refinance Program (HARP) has recently changed its guidelines to allow homeowners to refinance at today's lower mortgage rates even if their homes have declined in value. Depending on the loan they choose, homeowners can now refinance without LTV limits. This will help them to improve cash flow to pay off their mortgages easier and, hopefully, not be hesitant to become a homebuyer again in the future. HARP works with primary residences, second homes and investment properties.

HARP was established in 2009 to help homeowners with good payment history to refinance into more affordable mortgages despite declining home values. Originially, HARP capped LTVs at 125 percent for fixed rate loans, and 105 percent for adjustable rate loans. It maintains its ARM cap, but now there is not a limit for the LTV for a fixed rate mortgage of 30 years or less. However, if the loan is for more than 30 and up to 40 years, it is still capped at 105 percent.

This is very good news for those who are in states that were hit hardest by declining home values such as Arizona, California, Nevada and Florida. Mortgage rates are at the lowest levels in decades. Now is an opportune time for homeowners to take advantage of HARPs new policy and reduce their interest rate and monthly payments. They could then pay off their loans faster due to shortening the loan terms. This could lead to them making more real estate investments in the future as well.

To qualify for HARP, the property cannot have been refinanced by HARP before. The loan needs to have been originated before May 31st 2009 and be associated with Fannie Mae or Freddie Mac. No private mortgage insurance is required if it wasn't needed for the original loan and income documentation is not necessary. The amount of the loan just can't exceed the conforming loan limits for the property's location. The loan must be current and the borrower cannot have made late payments in the last six months, and no more than one late payment in the last 12 months.

If you feel as though you are drowning in the stress of being behind on your mortgage, HARP urges you to take advantage of this once-in-a-lifetime opportunity while you can! HARP wants to help bring you back into the home buying market with these low rates. Look into it today!

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