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It's finally here!!! The enhanced Home Affordable Refinance Program (HARP 2) for homeowners who have an upside down mortgage is now available. This program will lower your interest rate, monthly payments, & save you money!
As of 12/1/2011, the Home Affordable Refinance Program was enhanced allowing homeowners to refinance with a Loan To Value of up to 125% (Unlimited LTV as of 3/1/2012).
For example: In 2007 you purchased your home for $480K, with a loan amount of $380K at a rate of 6.5%. Now your loan balance is down to $355,722. Unfortunately the value of your home has dropped to $300K, giving you a current LTV of 119%, making your mortgage upside down or under water.
Ordinarily with a LTV of 119%, your underwater mortgage would have to remain in place.  HARP 2 allows you to refinance that upside down mortgage & greatly benefit you.
Continuing with the example, the table to the right depicts your current situation vs. refinancing into a HARP 30 year fixed or. a HARP 15 year fixed.
With the 30 year fixed you’ll save $622 per month, allowing you to pay off your loan in 18 years, 7 years faster than if you do nothing (assuming monthly savings is applied towards principal loan balance) & save a ton of money over the next 10 years.
Can you think of something useful to do with an extra $622.00 a month, $7464 a year? While I'm sure that you can think of plenty on your own, here are a few ideas to consider:
1. Retirement/Savings
2. Vacations/Travel
3. College Education
4. Reduce/pay off debt
 This next graph shows how much you can save over the next 10 years by refinancing. This is a substantial savings!
You will save $83,057 (assuming monthly savings is applied towards principal loan balance) or $114,684 if you choose 15 year fixed.
This amount of savings over the next 10 years simply by refinancing your upside down mortgage is phenomenal.
Especially considering that you can do this with no out of pocket costs except for possibly an appraisal–Truly Amazing!!!
This last graph demonstrates the massive amount of interest you’ll pay over the next 20 years leaving your  current upside down mortgage the way it is vs. refinancing into a new HARP 2, 30 or 15 year fixed.
If you do nothing, you’ll pay $343,481 in interest…..OUCH!!!!
However, refinance your upside down mortgage into a HARP 30 year fixed, you’ll pay only $156,236, that’s a savings of $187,245 in mortgage interest (assuming monthly savings is applied towards principal loan balance).
With the 15 year fixed, you would pay only $104,283, saving a Whopping $239,198 in interest.
These rates will not last! Delaying can cost you hundreds of thousands of dollars! Refinancing your upside down mortgage into a new low rate can be life changing. Take action right away!
Give me a call at 916-502-1656; email me at CReeseHL@Gmail.com, or visit Do I Qualify & fill in the pre-qualification form. I will personally contact you & help you find out if you qualify, let’s see how much you can save before rates go up!
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