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Old 11-03-2011, 02:54 PM
 
2,076 posts, read 4,074,309 times
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Any thoughts on the newly announced HARP 2.0 impacts to the LV RE market since they are removing the 125% LTV limit? This means no matter how far underwater you are on your loan, you can refi as long as you meet certain basic criteria such as having a federally backed mortgage, not having been late on payments, and either not having a 2nd loan or your 2nd loan must be willing to subrogate (not uncommon).

Another plus is that as long as your old loan didn't have PMI, your new loan wouldn't have PMI either.

This will allow ARM holders to get into a fixed rate product or people to drop to a lower interest rate or even just re-ammortize their loan to reduce the payment.

Definitely won't turn the market around, but I think it'll help keep some homeowners who are on the fence, in their homes.

If you haven't heard about the HARP 2.0 changes, here is a good overview.
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