The much anticipated HARP 2.0 Refinance Program is now in effect here in Utah. It is a great program for home owners who have lost value in their homes and gives them the ability to refinance at today's low mortgage rates. There is a lot of misinformation out there about the program and I have seen lenders and loan officers skipping some of the important stuff.

It is a very normal, regular mortgage refinance program except for two things...

• The POSSIBILITY of unlimited loan-to-value
• The POSSIBILITY to refinance even if you have Private Mortgage Insurance (PMI)

It is not a guaranteed loan. You still have to qualify and we go through normal processing and underwriting. We still have to document your income and your job history. You have to have good credit and have been making your payments on time for at least six months. We will handle it just like a normal refinance except we can ignore the normal loan-to-value guidelines. In theory you can have unlimited loan-to-value - 120%, 130%, even 150% and based on the Automated Underwriting System (AUS)an appraisal may be waived. However, some lenders may place caps of the LTV and you may qualify for an appraisal waiver but again this is not guaranteed. The program is being rolled out today and we will see just how different lenders are handling this program.

The reality is no lender can promise you a HARP 2.0 refinance approval without having a full application and submitting the application through the Automated Underwriting System (AUS). It is worth a phone call to find out. Call me, let's chat and see if this new program can help you lower your monthly mortgage payments.

Today's Best Available Rates in Utah

• 30 Year Fixed Conventional - 4.125% but with higher closing costs you can get 4.00%
• 30 Year Fixed FHA/VA - 3.875% with higher closing costs. 4.00% with no origination fee
• 15 Year Fixed - 3.375%

The Best Available Rates are generally for those borrowers with excellent credit (740 plus) and 80% loan to home value. Mortgage insurance applies to conventional loans over 80% loan to home value and for all FHA loans. For More Info on what market factors affect interest rates, check out my Mortgage Commentary.