HARP Overview

The Home Affordable Refinance Program®, HARP, will end December 31, 2018.

If you are among the many homeowners who still qualify for HARP refinancing, you could be paying more for your home’s current mortgage then you need to. Interest rates are much lower today than when HARP-eligible mortgages were made. So, refinancing under HARP typically results in a lower monthly payment depending on the term of the new mortgage.

HARP Benefits

The program is very understanding of any changes that may have occurred in your financial circumstances since your mortgage was made. For instance, if your household salary has declined since you took out your current mortgage, your credit rating has dropped, or you’ve had a bankruptcy, refinancing under HARP is still an option that could lower your monthly payments, making it easier to stay in your home.

The terms of the loan can also be changed to your advantage. If you are currently in an adjustable rate product, you can take advantage of today’s low rates to lock into a fixed rate mortgage before interest rates rise again. You also have the option of changing the maturity of your loan from 30 years to 15 years so you may be able to pay off your home sooner. You can also choose to lengthen the loan, if lower monthly payments would be of benefit in the near term.

Another advantage to refinancing under HARP is that there is no penalty for having low home equity. You can still refinance without triggering the added expense of Private Mortgage Insurance (PMI).

HARP Requirements

Here are the basic requirements for qualification under HARP:

  • You have a conventional mortgage that closed prior to May 29, 2009.
  • Your mortgage is held by Fannie Mae or Freddie Mac.
  • The mortgage is on your primary residence, vacation home or an investment property.
  • The value of your home has declined and your loan-to-market value is greater than 80 percent.
  • You haven’t had more than one late payment in the last 12 months, and no late payments in the last six months.

HARP Loan Options

Home Affordable Refinance Program (HARP 2.0): This program is designed to assist borrowers who have demonstrated an acceptable payment history on their existing Fannie Mae or Freddie Mac mortgage loan, but may not have been able to refinance to obtain a lower payment or move to a more stable product due to not having equity in their home.

  • No equity required
  • No appraisal required
  • No loan-to-value restrictions

Call us at 1-800-890-1057 for help today!

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