This is the government sponsored HARP refinance program. I felt like adding this to the title, “Don’t worry we have you covered in the back end with secret loans”.
Government Wants HARP Loans, Doesn’t Want Banks to Profit
By Aaron Task | Daily Ticker – Mon, Jun 18, 2012 10:24
Last year, the government tweaked the Home Affordable Refinance Program (HARP) program in order to spur refinancing of underwater mortgages. By removing loan-to-value cap, the government allowed homeowners current on their mortgage payments the opportunity to refinance at lower rates even if their existing mortgage was bigger than the current value of the home.
“These changes have been met with a very positive response from homeowners, particularly in deeply underwater states where so many families have been locked out of the refinance market for years,” HUD Secretary Shaun Donovan testified before the Senate Banking Committee last month. “Already, servicers report that they are processing applications from nearly a half-million families who stand to save on average $2,500 per year…speeding our efforts to help responsible families stay in their homes and start to rebuild the wealth they lost in the economic crisis.”
According to The WSJ, homeowners stand to save between $2.5 billion and $5 billion this year because of HARP refinancings.
But the Journal also reports that the administration is upset with the banks, who are reportedly charging an average of 0.5% more than market rates for the HAMP refinancings. The banks, led by Wells Fargo (WFC), JPMorgan (JPM), U.S. Bancorp (USB), Citigroup (C) and Bank of America (BAC) stand to generate up to $12 billion for refinancings under the HARP program this year.
At issue is that most people under water on a mortgage can’t get refinancing from anyone other than their original lender, leading Secretary Donovan to warn about a “monopoly on refinancing” during the same Senate testimony.
Anyone who’s tuned into The Daily Ticker (nee Tech Ticker) over the years knows that nothing gets Henry and I riled up like bailouts for the banks and the government treating them with kid gloves. But any “outrage” over banks profiting from HAMP refinancings seems like a ‘tempest in a teapot’, to quote Jamie Dimon.
Yorba Linda Overview
| Median home price is $511,000. Based on a rental parity value of $610,000, this market is under valued. |
| Monthly payment affordability has been worsening over the last 1 month(s). Momentum suggests unchanging affordability. |
| Resale prices on a $/SF basis increased from $247/SF to $250/SF. |
| Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. |
| Median rental rates increased $16 last month from $2,516 to $2,533. |
| Rents have been slowly rising for 12 month(s). Price momentum suggests slowly rising rents over the next three months. |
| Market rating = 6 |
Proprietary OC Housing News home purchase analysis 
5861 WALNUT CREEK Rd Yorba Linda, CA 92886
$545,000 …….. Asking Price
$558,000 ………. Purchase Price
10/12/2011 ………. Purchase Date
($13,000) ………. Gross Gain (Loss)
($44,640) ………… Commissions and Costs at 8%
============================================
($57,640) ………. Net Gain (Loss)
============================================
-2.3% ………. Gross Percent Change
-10.3% ………. Net Percent Change
-3.5% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$545,000 …….. Asking Price
$109,000 ………… 20% Down Conventional
3.80% …………. Mortgage Interest Rate
30 ……………… Number of Years
$436,000 …….. Mortgage
$102,200 ………. Income Requirement
$2,032 ………… Monthly Mortgage Payment
$472 ………… Property Tax at 1.04%
………… Mello Roos & Special Taxes
$136 ………… Homeowners Insurance at 0.3%
$0 ………… Private Mortgage Insurance
………… Homeowners Association Fees
============================================
$2,640 ………. Monthly Cash Outlays
($324) ………. Tax Savings
($651) ………. Equity Hidden in Payment
$139 ………….. Lost Income to Down Payment
$156 ………….. Maintenance and Replacement Reserves
============================================
$1,961 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$6,950 ………… Furnishing and Move In at 1% + $1,500
$6,950 ………… Closing Costs at 1% + $1,500
$4,360 ………… Interest Points
$109,000 ………… Down Payment
============================================
$127,260 ………. Total Cash Costs
$30,000 ………. Emergency Cash Reserves
============================================
$157,260 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..
We're sorry, but it seems that we're having some problems loading MLS # P824853 from our database. Please check back soon.
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$525,000 5581 OAK MEADOW Dr |
0.34 miles 4 bd / 2.25 ba 2,400 Sq. Ft. |
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$676,000 6250 CANNERY Ct |
0.4 miles 4 bd / 3 ba 2,417 Sq. Ft. |
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$449,900 19691 RIDGEWOOD Pl |
0.48 miles 4 bd / 2.5 ba 2,138 Sq. Ft. |
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$599,900 5481 BROOKHILL Dr |
0.52 miles 4 bd / 2.75 ba 2,200 Sq. Ft. |
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$790,000 5445 VIA RENE |
0.56 miles 3 bd / 2.75 ba 2,050 Sq. Ft. |
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$599,000 19761 FUTURA Dr |
0.62 miles 4 bd / 1.75 ba 2,200 Sq. Ft. |
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$575,000 5725 SOUTHVIEW Dr |
0.66 miles 3 bd / 2.5 ba 2,000 Sq. Ft. |
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$678,000 5345 VIA CARTAGENA |
0.67 miles 4 bd / 3 ba 2,477 Sq. Ft. |
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$599,000 20591 EASTHILL Dr |
0.69 miles 3 bd / 2.5 ba 2,000 Sq. Ft. |
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$748,999 5952 SUNMIST Dr |
0.7 miles 4 bd / 2.75 ba 2,540 Sq. Ft. |
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Not everyone is convinced the housing market has bottomed.
Radar Logic: Prices Show Monthly Gain, but Improvements Won’t Last
While other experts and analysts have concluded home prices are on the rise and the recovery is under way, Radar Logic released a report challenging the upbeat viewpoint.
“We believe that the oversupply of homes relative to demand will prevent sustained home price gains for some time,” the analytics firm stated.
The argument made by Radar Logic is that as buyers absorb the supply of homes for sale in certain markets and prices start to stabilize as a result, home owners who have been waiting on the sidelines to sell will do so once price start to improve. This will increase supply once again, and home prices will stop appreciating as supply exceeds demand.
According to the RPX Composite price index, which tracks prices in 25 metropolitan areas, home values decreased by 0.8 percent year-over-year in April 2012 and increased by 2.7 percent from the month before in March 2012.
From April 2010 to April 2011, home prices made an even steeper drop at 5.2 percent, which shows prices have improved year-over-year despite the yearly decline in April 2012.
The report also noted that spring price appreciation has been strong in the West over the years, especially in Los Angeles, Phoenix, San Jose, and San Francisco.
Quinn Eddins, director of research at Radar Logic and author of the report, warns other temporary factors are helping with the gains.
“Housing bulls point to recent strength in home price indices and say that housing has bottomed and a recovery is either underway or on the horizon. But much of the recent strength in housing prices is the result of investor demand and mild winter weather, and the effects of both are likely to be temporary.
The report explained that investor demand will eventually wane as returns for rent decreases. Also, warm weather this winter allowed for a head start into the buying season, so the early increase in demand will come at the expense of a slower buying season later unless new demand is created.
In addition to home prices, Eddins also takes a skeptical view of claims that low prices and low interest rates are making way for recovery.
Instead, he agrees with a recent article by Andrew Davidson and Alex Levin titled “Measuring Housing Affordability and Home Price equililbrium; Revisiting the Housing Bubble & Bust and HPI Modeling,” which expresses the view that when down payments and the availability of affordable mortgage products are taken into account, housing is not nearly as affordable as affordability indices suggest.