All You Need to Know About HARP
There are still many homeowners across the nation who don’t really know all there is to know about HARP. Therefore, I will go through the details here on my blog so you can understand how it can help you. HARP is short for Home Affordable Refinance Program. The program helps homeowners qualify to refinance their mortgage, whereas they couldn’t qualify before through a traditional loan. So, if you are current on your mortgage payments and your home’s value is less than what you owe on it, the HARP can help.
While home values are beginning to raise there are still many that are valued far below what is owed because of the fall of the housing market. Therefore, HARP was set up to help give homeowners in this situation a chance to refinance when traditional refinancing didn’t work. The HARP will help provide a more affordable and stable mortgage.
The HARP has been available for quite some time; however, there are still many homeowners who could take advantage of it. The program is part of the federal government’s “Making Homes Affordable” initiative. The goal of the program is to help responsible homeowners who are suffering from the value loss of their home to refinance at a low cost.
In many cases by using the program to refinance your home, you will improve your financial position once again. Your monthly principle and interest payments will be reduced. Or, if you are in a risky loan like an interest only or short term loan, you can get a fixed rate loan for an affordable price.
How to qualify:
* You must be current on your mortgage and in good standing with the mortgage company for the last 12 months.
* Your mortgage must be guaranteed or owned by Fannie Mae or Freddie Mac.
* The mortgage must have been sold to Fannie Mae or Freddie Mac before April 1, 2009.
* The mortgage can’t have been refinanced through HARP before.
* The current loan-to-value must be greater than 80%.