HARP 2.0: Same Low Mortgage Rates with Unlimited Loan to Values
The Government has announced a second version to it’s Home Affordable Refinance Plan (HARP 2.0).Although the initial HARP program helped some, it’s reach was much less than was originally expected.Loan Level Price Adjustments (LLPAs) implemented by Fannie Mae and Freddie Mac made refinancing underwater homeowners challenging.The original HARP was released in 2009 but failed to reach enough home owners due to high borrower costs associated with loan level price adjustments and an increased layer of risk for banks.HARP’s intention was to allow homeowners to refinance at current mortgage rates that may have negative equity.
It is estimated than more than 1 in 4 homeowners (over 14 million) are currently underwater.The release of HARP 2 is good news and will remove some of the obstacles associated with the first program.Millions of homeowners will now become eligible to refinance at historical low interest rates and with less hurdles than the previous program.
HARP 2.0 Highlights
Rules for Qualifying
The new version of HARP 2.0 is expected to begin March 15th, 2012.Eligible homeowners can expect low mortgage rates and unlimited loan to values.
Are Jumbo Loan Making a Comeback?
The underwriting is still tighter on jumbo loans than conventional or FHA financing, but lenders and investors are increasing their appetite for solid borrowers that are willing and able to fully document their income and assets.
Jumbo Loan Interest Rates are currently very attractive and I have seen an increase in traffic for both refinances and purchases.Some clients are now able to afford to buy in a neighborhood previously unattainable.
To get an idea of the appetite increasing for Jumbo Loan Rates, I thought I would share rates as of Friday 1/27/2012 for active clients:
Other Niche Jumbo Product Offerings Include:
Of course, every situation is unique, but in general these rates particularly the 7/1 Jumbo ARM are extremely attractive.When the market first imploded in 2007, jumbo mortgage rates skyrocketed.
I think it’s safe to say that Jumbo Loans are making a comeback!
Don't Wait to Lock Your Mortgage Rate! You may have heard about the new Guaranty Fee that was passed by Congress at the end of December, 2011. The Guaranty Fee for all GSE's, or Government Sponsored Enterprises was increased by 10bps in order to pay for a temporary 2 month extension to the payroll tax cut, extending it until 2/29/2012. The payroll tax stimulus plan was originally enacted approximately 13 months ago to lower tax rates (FICA) for salaried and self-employed tax payers by approximately 2%.
According to the new law:
What does this mean to you or your clients? Higher mortgage rates are inevitable due to the added cost to ALL lenders who sell loans to Fannie Mae, Freddie Mac, and Ginne Mae. The new Guaranty Fee applies to ALL loans sold and delivered to the GSE's, Fannie and Freddie, at the beginning of the 2nd quarter or later. Some lenders are pricing in the adjustment gradually over the next couple months, while others are pricing their rates with one giant increase.
Regardless, if NOTHING CHANGED in the market, borrowers can expect to pay .125% to .25% more on the interest rate.
The expected cost to consumers is no less than $10 per month per $100,000 borrowed. Some experts expect Fannie Mae and Freddie Mac to collect MORE THAN is minimally required. This could add an additional $30-50 to your monthly mortgage payment per $100,000 borrowed!
Housing and Mortgage Rates continue to dominate the headlines. As 2012 begins, mortgage rates are at record lows and there are plenty of experts that are weighing in on where they are going in 2012. The housing market finished strong and mortgage rates closed 2011 at some of the lowest points of all time ( Freddie Mac ).
Many expect the trend in the 4th quarter of last year will continue in the first quarter of 2012 for housing and mortgage rates, while others expect things to radically change.
Who do you believe? Here's some of the organizations that have gone on the record regarding mortgage rates and housing values:
When reputable news organizations weigh in, it's hard not to believe what they are saying. However, the key to remember is that NOBODY has a crystal ball on where housing and mortgage rates will go in 2012. There is an element of personal opinion in the expert analysis along with historical data.
Other factors to consider in my opinion are as follows:
Kiawah Island always amazes me no matter what time of year I visit. Since 1996, my family has called Kiawah Island home. Located approximately 30 miles from Historic Charleston South Carolina, Kiawah Island has become a favorite location for golfers, tennis players, beach goers, and nature lovers.
Kiawah Island consists of 10 miles of private pristine Atlantic Beach in the Carolina low country, The Sanctuary, a 5 Diamond Resort Hotel, and private and public golf courses designed by Dye, Fazio, Nicklaus and Watson, including The Ocean Course, host of several past PGA events and The 2012 Host of the PGA Championship. The Ocean Course also set the stage for the 2000 Film, The Legend of Bagger Vance, a golf film starring Will Smith and Matt Damon.
Kiawah Island consists of approximately 3000 homes that have been designed with nature in mind. An architectural review board reviews and approves exterior construction maintaining the consistency and quality of the Island, and its inhabitants.
Speaking of inhabitants. Home buyers, renters and vacationers share Kiawah Island with deer, bobcats, gray foxes, raccoons, river otters, and ospreys to name a few. However, the star attractions on Kiawah Island are the alligators that call the numerous ponds and lagoons their home, and to the loggerhead turtles that come to Kiawah's beaches to nest.
Kiawah Island has always been a place for reflection for me since my family began coming years ago. I've never been to a place that offers all that Kiawah Island has to offer and it offers a great change of pace from the fast paced lifestyle of a big city, like Chicago where my family is from.
There's plenty to do and see on Kiawah Island and nothing beats going over to Vincent's Fountain Shop or grabbing some comfort food at Lucy's Red Sky Grill. Or stop by Sidi Limehouse's Rosebank Farms for fresh fruit and vegetables.
Kiawah Island's homes and townhomes are a wonderful place to stay. And owning a home on Kiawah has become more obtainable in the recent downturn of the economy. If you are in the market and would like more information about mortgage options on Kiawah Island, I would be happy to answer any questions you have!
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Equal Housing Lender. Prospect Mortgage, LLC, NMLS #3296. I am a licensed mortgage originator, NMLS# 130813, and am licensed to originate mortgage loans in the following state(s): Illinois, PA, SC
When you need a new home you really don't care as much about the economy as some would like for you to. After all, if you have been transferred with your company, had a change in lifestyle or the number of household members all you care about is how to qualify to purchase a home. There are many changes which have happened in the mortgage industry over the last several months and only a well trained and experienced loan officer can help you find and qualify for the best mortgage at the best interest rates for you. Here in Chicago it is no different than anywhere else. If you are searching the "homes for sale" sections but need to know "can I qualify for a mortgage" then the first stop really should be a trusted, Chicago mortgages professional you can trust.
The internet has made things so easy has it not? Today we can shop for Chicago homes listings online, get a fast mortgage rate quote, find "the lowest interest rates", and even spply for a home loan online. Is this a safe practice? Yes and no. Some home loan sites are simply lead services and they don't actually make home loans in Chicago or anywhere else. All they do is get you to apply online then sell your information to a dozen banks and loan officers. For this reason it is very important that you place your online mortgage application with Chris Jones. Not only is Chris the actual loan officer but he is based right here in Chicago and knows as much about mortgages and home loans for Chicago real estate as anyone you will meet.
Another great reason to trust Chris is related to the above. You see those companies that do not have to stand behind what they print offer the "guaranteed lowest rates on home loans" then advertise interest rates so low no mortgage company can touch them. This is simply a trick to get you to apply online. When you apply with Chris it's not that way. He will give you the best real mortgage rate quote based on some facts he learns about you in a very short interview. You can apply online, apply over the phone or contact Chris for the best way for you to communicate. Remember, he's in Chicago but this is a large city so you can still use the other methods to make your home loan application. He will give you an accurate estimate of your closing costs, your interest rate and answer all of your other questions with integrity and honor.
About Me
I am currently a Senior Mortgage Banker for Prospect Mortgage. Headquartered in Sherman Oaks, CA, I work from the company's downtown Chicago location.
I in banking in 1998 when he joined a Community Bank in the Chicagoland area. After four years, part of which were spent managing a branch location originating home equity loans and auto loans, I became a Licensed Registered Representative after completing my Series 7, and an Illinois Insurance Producer. Always passionate in real estate, I decided to focus on mortgages full time in 2002. After cementing strong and lasting relationships in 2003, four friends and I started a mortgage company in Oak Park, Illinois. A graduate of Fenwick High School and growing up in neighboring Forest Park, I spent 4 years comanaging a team of loan officers and processors and growing a business. I partnered with Prospect Mortgage in June of 2011; a nationally recognized company in mortgage circles and one of the largest mortgage banks in the country.
I achieved the designation of Certified Residential Mortgage Specialist (CRMS) in 2009; a designation given to less than 100 loan officers in Illinois and less than 1000 loan officers nationwide.
Areas of Specialty Include:
You may have heard talk about the economy not being exactly what it should be. Well, there's an interesting thing that happens in the mortgage industry when the economy is like today: mortgage rates generally start to decline. Nothing could be more true than this today and the way it affects large cities like Chicago is perfect for someone wanting to look at new homes for sale. The reason times like these, with the lowest mortgage rates, affect major cities like Chicago is because of the vast selection of homes for sale and the number of qualified buyers. The fact is there are more Chicagoland homes for sale than there are home loan qualified buyers and that makes this a great time for anyone who can get a mortgage to achieve the best deal possible.
To answer the question, "am I qualified for a mortgage" is one of the easiest steps. It generally involves a short mortgage application, a precursory examination of your credit, income and assets, a determination of the mortgage interest rates for the day and if all is within range you can qualify for a home loan. The initial process is very quick and can be done a the mortgage loan officer's local Chicago office, through an on-line mortgage application or with a short phone conversation with your loan officer.
The safest way to apply for a home loan on-line is to go straight to the loan officer's website. Many sites that accept on-line mortgage applications are simply lead generation companies which then resell your information to a handful or even dozens of complete strangers. When you apply on line with a Chicago home loan expert like Chris Jones your information goes only to him and is not shared with or sold to others.
State of the Lending Industry
As you are most likely aware, the lending landscape has changed dramatically since I started aligning customers with mortgages 14 years ago. Today, we face more challenging times, but where there is adversity, there is opportunity. We have come full circle to when I started originating mortgages years ago. We went from a full documentation world, to a world full of No DOC, NINA, SISA, SIVA, NINJA, etc loans…For those not familiar with the acronyms, these were products where if you were breathing, you most likely could qualify. Today is different. But it represents a HUGE opportunity for borrowers that can document their income, assets, and job history. Home buyers and investors are scooping up properties at STEEP discounts to prices over the last several years. To add to that, borrowing costs through historical low mortgage rates are making this the perfect time to buy or refinance your home.
Be prepared, ask questions, and get preapproved early in the process..You may contact me at any of the methods above and I would be happy to see what I can do for you.
Equal Housing Lender. Prospect Mortgage, LLC, NMLS #3296. I am a licensed mortgage originator, NMLS# 130813, and am licensed to originate mortgage loans in the following state(s): Illinois, Pennsylvania, South Carolina. To learn more, visit my Prospect Mortgage website at https://www.myprospectmortgage.com/CJones/prequalify.asp
I have worked with Realtors, Homebuyers, Homeowners, Builders and Attorneys accross the country. Below are testimonials from some of my clients and referral partners.
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We recently bought a house and Chris was the star of the transaction. Communicating with him was a real pleasure. His responsiveness and patience was remarkable. He gave us a great quote and followed through on his commitment without any catch, unlike some of the other agents who were trying to sneak in extra costs. We wanted to close the mortgage in a short time frame and Chris was able to beat our expectations. Even our realtor and attorney were impressed by Chris and his professional & timely communications. In spite of the new mortgage processing rules & regulations, Chris and rest of the members at Wintrust Mortgage made the process effortless for us. I would definitely recommend Wintrust Mortgage to anyone who is shopping for a loan.
Vipin and Ujwala
New Jersey
Chris was amazing! He helped us save literally thousands of dollars. We will recommend him to anybody we hear interested in purchasing a house.
Eric and Ashley J.
Reno, NV
The whole experience with Chris Jones from Wintrust Mortgage was excellent. He is very knowledgeable, helpful and most importantly trustful. I would highy reconmend anyone who is considering buying a house to call Chris Jones.
Holt and Susan P
Mineral, VA
Thanks for the notice, it is good to be kept “in the loop” good move and I will remember it.
Kemper (Butch) Weaver
Realtor
Virginia
Chris went above and beyond the call of duty to help us get through some hurdles presented by our line-of-credit lender. He fully explained options and worked with us to make sure we got the best rate possible. You'd never guess this a low fee lender given the level of service and attention to our deal. I highly recommend working with Chris and Wintrust. After many re-financing's, this was the best broker I've ever worked with.
Rebecca and Dan T.,
Glendale Heights, Il
I think you did an awesome job with the time period you had to work with. You were very prompt with everything that was requested of you. I especially liked how you sent status updates on every stage of the loan process. I will definately refer clients to you in the future and highly recommend you to anyone looking to buy or refinance their home. Thank you.
Nadine Porta
Realtor
HomeKey Real Estate Group
Baton Rouge, LA
I’m sure you already know, but Yahoo!!! We closed today! Thank you again for all your help in navigating this transaction – I really appreciate all your efforts in making sure we had a successful closing. Eric and Ashley are very happy and were thrilled with how everything turned out with the loan.
Julie K.
Remax Realty
Reno, NV
Chris and his staff especially Mary Ann were amazing. We closed in 3 weeks!! We are not the easiest clients but we were treated with professionalism, understanding and patience. I would recommend Chris to everyone and we will use them again.
John and Susan M
Coeur D Alene, ID
Dear Chris,
I just wanted to thank you for your unbelievable service and the “speed” with which you were able to get Cordell & Ruth Reeder’s loan done.
He had contacted you on October 1st with a close date of October 13th; I thought there was NO WAY this was going to happen! Especially, in todays market where the lending institutions have gotten very tough on guidelines and procedures.
I was so impressed with your “take charge” attitude and I immediately felt a sense of relief and thought there was actually a chance this was going to happen! You had placed a rush on the appraisal, received loan approval, and we were able to get them closed by that date!
I will definitely recommend your service to my other customer’s and look forward to working with you in the future!
Warm Regards,
Michelle Kekich
Centex Homes
Del Webb Community “Alegria”
Bernalillo, New Mexico
Chris and his staff were very helpful and willing to aid us in any way possible to get our loan approved as well as to meet our closing date. I would definitely recommend him to anyone who is looking to get a loan.
Jessie and Randy E
Williamsburg, PA
Very informative and eager to help. Was able to get me a very low rate compared to other brokers. My loan process went very smooth and I have already recommended Chris to a friend.
Len S, Wheeling, Il
great rate, got the job done!
Lilly R, Baton Rouge, LA
Cordell R, Bernalillo, NM
I got a really great deal on the interest rate and fees, and got great service as well. My case was a little complicated and unusual, and the staff there really went the extra mile to make sure everything went smoothly and that the unusual bits were fully explained to the underwriters. They really put in extra time on my file, and worked late hours, but took it all in stride and got everything done on time. I couldn't have asked for better service.
Jennifer B, Royal Oak, MI
Very friendly and knowledgeable. Professional service.
Hongliang J. Farmington, MI
Very helpful and responsive. Even my realtor commented how easy it was to work with Chris.
James B., Ohio
I closed with Chris and our transaction was very smooth and painless. He completed everything just as he said he would. There were absolutely no surprises and he explained everything that I was concerned with. He even went as far as answering questions and locking my rate on his vacation. Bottom line: If you want the job done right with no surprises, I would give Chris a call.
Sameer B, Niles, Il
As a first-time home buyer, I lacked knowledge about mortgages and the whole home buying process. Chris and his team were by my side every step of the way. I anticipated purchasing a home in the near future, but opportunity knocked a little sooner than planned and suddenly I was faced with the purchase of my first home with only 30 days to close. Chris, Donna and the rest of their team worked diligently to ensure that I got the best loan with very little lead time. They were available anytime of the day to answer my many questions and alleviate my concerns. Whether you are purchasing your first home or your fifth, I highly recommend Chris as the individual to take care of all of your mortgage needs.
Chris, I cannot thank you enough for all that you have done for me. I look forward to working with you on all my future mortgage arrangements!
Carly S., Chicago, IL
With excellent rates and top-notch customer service, you can't top the lending ability of Chris Jones. He made first time home buying easy! Chris even went the extra mile to make sure we got the most from our purchase. Even our local bank couldn't beat the deal offered by Chris.
If you're in the market for buying a home or refinancing, you can't afford not to check with Chris Jones first!
Josh & Maggie, Saybrook, IL
-Steven O.
Elk Grove Village, IL
Chris and his team more than earned our business. From application to close, we were in our new home in a month. And they handled the whole process with great professionalism and a can-do attitude.
Fernando & Carey G., Downers Grove
Just the amount of effort and paperwork involved in obtaining a home loan can make it a very
stressful experience. On top of the normal stress of the situation, our circumstances were not
ideal and there were many ways in which things could have gone wrong but did not due to the
competence and foresight of Chris and his team. They worked diligently to make sure that our
loan was completed on time and they were very patient in dealing with the many questions
that we had. Whenever we called with questions we always hung up with answers and that
made the whole process easier on us. Chris was efficient, professional, friendly and patient
whenever we spoke. He was also extremely knowledgeable and made it easy for us to
understand the process and what to expect next. There were times when I was calling Chris
almost daily and I know we’re not his only clients but he made it feel like we were and I even
called Donna, the processor for our loan, with questions and I’m sure she was very busy
dealing with organizing the many details that go along with the application, but they never
made me feel like it was an imposition. They were always quick to respond to emails and
requests for more information. I would strongly recommend Chris to anyone needing to obtain a home loan. Calling them put us on the road to our new
house and it was the best decision we’ve ever made. Thank you so much to Chris and all of
his team!!!
Michael & Michelle H., Belvidere, IL
"Our experience as first time home buyers was excellent! Chris and his team went above and beyond the call of
duty to make this a wonderful event for us. For us, it started with us calling Chris in the beginning of April for preapproval. After squaring our financial issues away, we found a house we both liked by the end of the month. We had unrealistically high hopes of being in our new home by Memorial Day weekend....leaving less than a month
for Chris and team to get the details taken care of. Chris worked on our loan morning, noon, and night.
(Literally..we actually had emails coming from him at mignight!) All of the paperwork was done via email and fax!
It was so simple. This way allowed us to take care of everything at night when we weren't working. Working with
Chris couldn't have been any simpler. We are positive we recieved the best service available from Chris because
we closed on our house before Memorial Day weekend. We will defina tely recommend Chris and his team to all
our friends and family when they are in need of a lender. Chris makes the impossible possible. Thank you
Chris for everything you have done for us. You are amazing at what you do and thank you so much."
Shana & Eric T., Martinton, Il
“we were very happy with the home buying experience. Chris and his team kept us informed throughout the process”
Jim and Mary T. , Forest Park, Il
“Chris lowered our payments $200 per month and delivered us professional service in a timely manner”,
Velma W. Chicago, Il
Very informative and eager to help. Was able to get me a very low rate compared to other brokers. My loan process went very smooth and I have already ... more 
5.0/5.0 I got a really great deal on the interest rate and fees, and got great service as well. My case was a little complicated and unusual, and the staff ... more 5.0/5.0 We had a very good experience with our refinance. Chris got us the best rate and he was very responsive. We will definitely recommend him to our ... more 5.0/5.0
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