If you are on the market for a Condo and are seriously considering purchasing in a new development, please read this article as it explains some of the pitfalls and additional costs associated with it. Further, use our closing cost calculator to help you determine the additional costs in doing so.
Please feel free to contact a FARE Agent for more information on this or any other questions you may have on the process! We look forward to hearing from you! Enjoy....
Some quick Q & A's on the Coop board's recourse when it comes to late fees, guidelines in purchasing a Condo for professional use and a Coop Sponsor's rights in regards to unsold shares. Please feel free to leave your comments and/or questions. Enjoy!
The Obama administration has rolled out a plan to revamp the current Home Affordable Refinance Program. HARP, started in April 2009, was created to help borrowers with Fannie Mae and Freddie Mac backed mortgages refinance their loans even if they did not have enough equity in their homes to do so conventionally. The plan was designed to lower borrowers’ interest rates without them having to pay down their mortgage or take out mortgage insurance.
Initially, the program was limited to borrowers who owed between 80% and 105% of the value of their homes. But under the new changes, there will be no loan-to-value restriction
Additionally, the new changes minimize the risks banks have in “buying back” mortgages that default and fail to follow conventional Fannie Mae and Freddie Mac underwriting guidelines. Under the new changes, banks will be protected from the “buy back” risk on HARP mortgages and will need only to verify that borrowers meet a largely paired down version of eligibility requirements.
The new HARP changes will take effect after Fannie Mae and Freddie Mac issue final pricing information and other technical details around November 15th.
What Are the New HARP Requirements?
First, the borrower must have paid their mortgage on-time for the last 6 payments and may not have missed more than 1 payment in the last year. Second, the mortgage must have been sold to Fannie Mae or Freddie Mac prior to June 1, 2009. And third, you may not have used the HARP program before as only one HARP refinance per mortgage is allowed.
How Do I Proceed?
Go online and find out if your mortgage is owned by either Fannie Mae
, or Freddie Mac
. If your loan is owned by either, contact your lender or any participating HARP lender to discuss your eligibility.
If you are HARP-eligible, you must close on your mortgage prior to January 1, 2014.
The average 30-year mortgage dropped to 3.94% last week according to Freddie Mac’s weekly rate survey released on Thursday. Freddie Mac says the rates are the lowest since its survey began in 1971 when rates for 30-year mortgages were as low as 4%, but not lower. This can result in considerable savings for buyers. Take advantage of the opportunity and contact a FARE Agent to get started!
Currently on the market to buy property and are considering doing it alone? Below is an article from the NYT that describes the benefits of working with a broker. Find out how The FARE Group can help save you valuable time and money. Contact us today!