The Home Affordable Refinance Program (HARP) is a federal government mortgage refinance program launched in March 2009 that helps underwater homeowners refinance their mortgages. Underwater homeowners will receive new mortgage rates with lower monthly payments. If you owe more on your home than what your home is worth, then HARP may be the answer for you.
According to the FHFA’s interactive HARP map, there are more than 600,000 home mortgage borrowers in the U.S. who can still reduce monthly mortgage payments through HARP. With interest rates still low, but projected to rise this year, this may be the last chance for homeowners to find some financial relief by benefitting from HARP to reduce monthly mortgage payments.
So far, nearly 3.3 million borrowers have already taken advantage of HARP to reduce their monthly payments and obtain some financial relief. “Extending HAMP and HARP through the end of 2016 will provide real relief for borrowers who continue to face challenges either paying their mortgage or refinancing their loan,” said FHFA Director Mel Watt.
To be eligible for HARP:
1. Your home loan must be backed by Fannie Mae or Freddie Mac.
2. You must have obtained your home loan before May 31, 2009.
3. You must be current on your mortgage payments.
4. You must have a current loan-to-value ratio greater than 80 percent.
5. You cannot reasonably refinance due to home depreciation.
6. Your home is your primary residence.
Changes to HARP have been recently been made. If you previously were not eligible for HARP in the past, you may be eligible now. There were revisions to the program’s loan-to-value calculations. Also, homeowners do not have to refinance with their current lender. Homeowners can refinance with any lender they choose. The typical HARP refinance saves homeowners 35% annually. It’s worth the time to see if you now qualify.
Contact Our Walworth County Real Estate Law Office
If you have questions or need assistance with your real estate matters, contact our Walworth County real estate law office. To speak with our Walworth County real estate lawyer, call 262-725-0175. You can also contact Wynn at Law, LLC via email on our website’s contact page.
*The content and material on this web page is for informational purposes only and does not constitute legal advice.