Hi, I'm writing this as a continuation of yesterday's blog named Harp 2 Refinance Information. Today I wanted to explain 125% loan to value in detail, as it's a mortgage term. Basically, if your home is worth less than the amount you owe on your mortgage, then you would fall under the category known as "underwater". With this new version of Harp called the HARP 2 Refinance program there is not a cap on how much underwater you can be. Previously, if you were over 125% of the outstanding loan on the home and would not qualify. So, quick example; your home is worth 150,000 and you owe 250,000 you would be over 160% LTV (loan-to-value) and you would still be able to attempt to refinance under the NEW guidelines, if you meet the other requirements as well. So let's review them again, with some additions:To apply for HARP 2 Refinance Program, applicants must first meet some basic criteria :***MUST BE YOUR PRIMARY RESIDENCE***1.The existing mortgage must be guaranteed by Fannie Mae or by Freddie Mac 2.The existing mortgage must have been securitized by Fannie Mae or Freddie Mac prior to June 1, 20093.The mortgage payment history must be perfect going back 6 months4.The mortgage payment history may not include more than one 30-day late payment going back 12 months, originally, HARP didn't allow any delinquencies in the last 12 months.5.There is no LTV ( loan-to-value) cap with the new revisions of the HARP 2 Refinance program for borrowers who now have fixed-rate mortgages.6. For borrowers with ARMs (adjustable rate mortgages), the LTV ( loan-to-value) cap remains 105 percent. 7. Bank Fees have been reduced. Lenders are fond of adding fees to loans that have an added risk element. Fannie and Freddie call these fees "loan level price adjustments" or LLPA's and these charges easily can climb to thousands of dollars with a cap of 2% of the loan amount on the original Harp program, Under the new HARP 2 refinance program, the fees are reduced to zero percent on loans for 20 years or less, and 0.75 percent for mortgage for more than 20 years and for ARMs. Working with a licensed well qualified Mortgage Specialist like myself, can guide you throughout the whole process and maximize your chances of obtaining the best deal for your situation.If you meet the above criteria, then call me ASAP and I will qualify your eligibility and prepare you for the official launch of Harp 2....When you only want the Best....Ralph GuertinRalph@absolutelowrates.com or call me 954-274-7725