This week’s conversation is the latest version of the HARP program, HARP 2.0.  The Federal Housing Finance Agency (FHFA) and the Department of the Treasury introduced the HARP program in early 2009 as part of the Obama Administration’s Making Home Affordable program.  HARP & now HARP 2.0  as it is becoming referred to as, provides borrowers a mortgage weapon in this long housing market war. There are some incredible changes from the original HARP program that will help home owners take advantage of this current low mortgage rate environment. Let’s take some time and review them.

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Every Thursday Freddie Mac releases its Primary Mortgage Market Survey (PMMS), which details the nation’s average mortgage rates. This past Thursday was the second consecutive week of record low fixed mortgage rates. 30yr fixed rates averaged 3.83% with .7 points, down from 4.63% a year ago.

So what’s driving rates so low and what’s keeping them there? Read the rest of this entry »

Tom Coonan, the owner of the family owned and operated Coonan Insurance in Oxford MA, shares his expertise with The Mortgage Buddy Audience. Read the rest of this entry »

It wasn’t too long ago that banks required a 20% downpayment when buying a home. Mortgage products are not what they used to be, and let’s face it, in these economic times, neither is saving up 20% to put down on buying a home. More and more people would rather keep money set aside for an emergency then utilize it for a home purchase. The good news is that there are many mortgage products that allow MA residents to make lower downpayments. The most popular way to sidestep a large down payment requirement is with Mortgage Insurance. So what is Mortgage Insurance and how is it utilized? Read the rest of this entry »

“What are my closing costs?”. This is one of the first questions that a client will ask their lender about their mortgage product. The more you understand the costs associated with your home loan the more comfortable you will be with the product, the process and your lender. So what are your closing costs and what is a zero closing cost loan? Read the rest of this entry »

The excitement that accompanies the journey to homeownership is often closely followed by the anxiety of a transaction that is in many ways out of your control.  Having a general understanding of the process can help to alleviate that nervous feeling so you can focus on the ebullience of the next stage of your life. The following is a basic home buying guide that tracks your loan from the offer to closing. Read the rest of this entry »

Your time is valuable and you need to know that your lender has provided you a bullet proof pre-approval letter that will be the foundation for a smooth mortgage transaction. Applying for a mortgage is not what it used to be, gone are the days of relaxed lending practices and mortgages for all. Today’s lender needs to focus on 3 specific areas; credit score, debt to income ratio, and down payment. Through the evaluation of these 3 specific criteria, your lender is able to get a complete understanding of your mortgage profile and home purchasing or refinancing capabilities.

The 5 Steps to a Mortgage Buddy Pre-Approval: Read the rest of this entry »

Take a minute and imagine you are one of the millions of Americans who has lost their job and is way behind on their mortgage payments with no chance of getting back above water. You have drained your savings account and the next step is to dip in that retirement fund you have sacrificed so much for. You never thought you would ever be in this position but you are. Do you let your home go into foreclosure? OR do you head down the road of a short-sale? What is the Real Truth behind your options? Read the rest of this entry »

Before you sit down with your mortgage professional to complete an application for home financing, you need to know your credit score from the 3 major bureaus, and if there are any errors or omissions that could be damaging your credit. We are, in many ways, only as powerful as our credit score allows us to be. It’s the key to borrowing money to create wealth, and the key that unlocks the door to home ownership with the lowest interest rate possible. We have to be proactive and guard our credit rating from the credit gods Experian, Equifax and Transunion.  If you have found an error on your report you need to know Read the rest of this entry »

The economic challenges of the past three years have left millions of Americans searching for ways to scrape together enough money to cover their basic living expenses. The high unemployment rate and the increase in the cost of food and fuel are making it increasingly difficult to get out from under debt. When you have exhausted all of your resources and there isn’t another spare dollar, you basically have 2 choices file for bankruptcy or Read the rest of this entry »