Close To 1 million Homeowners Nationwide Are Missing Out On Lower Mortgage Payments


Freddie Mac survey shows most homeowners still not benefiting from low mortgage interest rates


New Survey By Freddie Mac Shows Many Homeowners Are Still Overpaying For Their Mortgages

By Jason Boone

Thanks to a recent survey by Freddie Mac we know that close to 1 million homeowners across the United States are overpaying for their mortgages each month.

Even though mortgage interest rates dropped to a low of 4.1% last week, for a 30-year fixed mortgage, the Freddie Mac data has shown us that most homeowners are not tapping into the resources which are available which will help them lower their monthly mortgage payments.

Home Affordable Refinance Program (HARP)

Started during the “great recession”, the Home Affordable Refinance Program has been one of the best opportunities for homeowners in Bend Oregon and across the United States to refinance their mortgages plus shave at least $200 or more per month off their monthly mortgage payments.

So far over 800,000 families across the United States have benefited from HARP and this program has helped both the consumer and lender since it’s kept more homeowners in their homes and helped lenders reduce the chances of a home slipping into foreclosure.

About HARP

Millions of homeowners found themselves in a difficult predicament after the U.S. housing bubble burst in 2008. As inventories soared nationwide, home prices plummeted. Many new homeowners saw the value of their homes drop below the balance of their mortgages, or nearly so. Later, these same homeowners were prevented from taking advantage of lower interest rates through refinancing, since banks traditionally require a loan-to-value ratio (LTV) of 80% or less to qualify for refinancing without private mortgage insurance (PMI).

Take for example a house that was purchased for $160,000 but is now worth $100,000 due to the market decline. Further, assume the homeowner owes $120,000 on the mortgage. In this scenario, the loan-to-value ratio would be 120%, and if the homeowner chose to refinance, he would also have to pay for private mortgage insurance. If the homeowner were not already paying for PMI, the added cost could nullify much of the benefit of refinancing, so the homeowner could be effectively prohibited from refinancing.

Source – Wikipedia

Who Qualifies For HARP?

If your mortgage is guaranteed or owned by either Fannie Mae or Freddie Mac you qualify for HARP.

You will also qualify for this program if your mortgage loan is over 80% of your home’s value and you have been current with your mortgage payments for the last 12 months.

Before Choosing HARP or Refinancing

Regardless if you choose HARP or decide to refinance your current mortgage loan make sure that you pull your credit score first and verify what your current credit score is because it make sense to wait a few months to improve your credit score before choosing to refinance your mortgage loan.

Contact Us

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To learn more about the benefits of refinancing your mortgage loan, HARP or the Bend Oregon Real Estate Market contact me, Jason Boone, Principal Broker at Duke Warner Realty | Skjersaa Group by calling me at (541) 383-1426 or by emailing me at


Freddie Mac and Fannie Mae Close To Paying Off Bail Out Money


Thanks to their recent quarterly reports, we know that Fannie Mae and Freddie Mac both enjoyed profits during the third quarter of this year. Fannie Mae had a profit of $8.7 billion, while Freddie Mac had a profit of $30.5 billion.

What does this mean for the American taxpayer? It means good news because; both Fannie and Freddie are close to you paying off the bailout money that the Obama administration put into their businesses back in 2008.

Changing Times

During the days preceding the 2008 bailout, it did not look like Fannie Mae and Freddie Mac were going to pull outs of the massive hole that they found themselves in but, thanks to the government taking over the two financial giants, loaning them close to $200 billion in 2008, both Fannie Mae and Freddie Mac are close to being out of debt to the United States government and getting back on sound financial footing once again.

Awesome Profits

Fannie May and Freddie Mac have both enjoyed profits for seven straight quarters and these consistent profits over the last couple years have enabled them to get close to paying off all of the bailout money that the Federal Government has invested in both businesses but what does this mean to the Bend Oregon home buyer?

The latest word is that the Federal Government is trying to get out of buying mortgage backed securities and when they do this could cause mortgage interest rates to go up at least temporarily until home buyers react to these new conditions in the mortgage market but mortgage interest rates shouldn’t increase dramatically since everyone from President Obama to local Bend Oregon Realtors agree that the growth of the Real Estate market is driving economic recovery in the United States.

To learn more about the latest Fannie Mae and Freddie Mac news, or if you are interested in viewing the latest Bend Oregon homes for sale, contact me today by calling 541-386-1426.

Freddie Mac and Fannie Mae News

jason boone bend oregon realtor


This summer when the Federal Government announced that they were no longer going to buy mortgage backed securities that shot up mortgage interest rates and sent the Real Estate market into a temporary state of shock until the Fed backed off on their plans.

Last week the Federal Government announced that Freddie Mac and Fannie Mae loan limits are not going to be reduced for at least another six months and that any reduction that the Fed makes in loan limits won’t occur until they announce it at least six months in advance, so the Real Estate and financial markets will have at least six months to prepare.

Badly Needed

Everyone knows that the only real way the Bend Oregon Real Estate, and Nationwide Real Estate can truly recover is if the Federal Government begins to wean itself from involvement with Fannie Mae and Freddie Mac, but the Federal Housing Finance Agency (FHFA) also knows that it’s not something that cannot be done overnight, especially if the Government wants to avoid any economic disruption like the disruption that occurred this summer.

Proceeding with Caution

Edward DeMarco, the Acting Director of the Federal Housing Finance Agency said “While it will get more time to prepare for any changes, a decision on whether to lower the limits, and by how much, would still be made in late November”.

As of October 2013 Fannie Mae and Freddie Mac can’t back loans greater than $417,000 across the United States although in some markets they can back loans as high as $625,500, especially in wealthier parts of the United States like: Hawaii, California, New York and Washington DC.

Mixed Reaction

Since mid-2008 when the mortgage caps were raised, to keep our mortgage market going across the United States, more people were able to own a piece of the Bend Oregon Real Estate Market and a larger number of Americans than in the last 40 years have been able to buy homes because, mortgage interest rates and home values have been so affordable but once the caps are lowered many investors and economists in the USA are concerned that some homebuyers will be pushed out of the Real Estate market since rising mortgage costs might make it unaffordable for many home buyers to buy homes.

What are your thoughts on this news? Feel free to leave me a comment below.

For more information on what to expect in the Bend Oregon Real Estate market in the next 12 months or to view the latest Bend Oregon homes for sale, contact me today by calling (541) 383-1426.

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