What is HARP?
Initially started in April 2009, the Home Affordable Refinance Program (HARP) is a mortgage refinance program intended to lend a hand to under privileged homeowners with conforming / conventional home mortgages. However, under the old HARP setup, restrictions on Loan to Value (LTV) of 125% and large interest rate adjustments for refinances over 100% LTV meant that many people are not eligible for the program.
However, the first stages of the new program were just rolled out last November with supplementary facts released in December. HARP can now open the program to hundreds of thousands of homeowners.
The main goal of HARP is refinancing that will put accountable borrowers in a better situation by dropping their monthly expenses, reducing their interest rate, reducing the amortization period, or moving them from a more risky loan construction (such as an interest-only mortgage) to a more steady result preset mortgage.
By allowing under privileged homeowners the capability to take advantage of todayâ€™s lesser interest rates exclusive of having to pay down their equity or have mortgage insurance, existing homeownerâ€™s can trim down their monthly mortgage payments, save extra money and even help boost the economy.
Here are the qualifications you must encompass before you can apply.
- Your mortgage should be owned or assured by Freddie Mac or Fannie Mae.
- Your mortgage necessity has been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
- Your mortgage cannot cover previously refinanced mortgage under HARP, from March-May of 2009, unless it is a Fannie Mae loan.
- Your current loan-to-value (LTV) percentage must be above 80%.
- The borrower must be up to date on the mortgage at the time of the refinancing, with a good payment record for at least the past 12 months.
Steps to acquire HARP Refinance
- Verify whether your mortgage is owned or assured by Fannie Mae or Freddie Mac by visiting their respective Loan Lookup Tools.
- Contact your present mortgage company or another that is permitted by Fannie Mae or Freddie Mac to inquire about HARP.
- Calculate estimated rates and costs with supplementary mortgage companies to ensure best refinancing terms.
At present HARP serves in 26 cities namely:
Alabama, Atlanta, Birmingham, Beaufort, Â Boca Raton, California, Carolina, Charleston, Florida Â Ft, Lauderdale, Georgia, Huntsville, Tennessee,Â South Washington, Nashville,Â Savannah,Â Tampa,Â Orlando,Â Miami, Greenville, Mobile, St. Pete, Memphis, Tallahassee, Jacksonville and Panama City.
Help has finally arrived. Want to take advantage of todayâ€™s low mortgage rate? Consult your mortgage company on how you can avail of this wonderful program.
More notes pertaining to HARP Refinance:
Procure HARP Refinance!