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Home Affordable Refinance Program (HARP)

These economic times have millions of homeowners underwater or upside down on their mortgages. This means that they owe more money of their home than their home is valued at. The Home Affordable Refinance Program (HARP) allows them to get a mortgage refinance that lowers their monthly payment, prevents foreclosure, or both.

Many responsible homeowners have been feeling punished from the negative effects the bad housing market has incurred. Help is now available for those homeowners who’ve been keeping up with their mortgages while the value of their home has declined, thanks to HARP. In past years it was hard, if not impossible to get a mortgage refinanced under these conditions, or even a mortgage at all. But due to recent changes, nearly any homeowner can get a mortgage even with upside loans and other financial situations.

How Do HARP Loans Work?

Home Affordable Refinance Program (HARP) loans are to provide responsible homeowners a chance to have more affordable, stable and better mortgage payments. There are the typical fees associated with these loans including closing costs but the savings through this stimulus program from the low interest rates will most likely offset these costs.  You must first be eligible for this program. Some of the eligibility requirement would include: The current home loan must be current and paid on time for 12 consecutive months.

The current home loan is backed by Freddie Mac or Fannie Mae.

The loan to value ration has to be 80% or more.

The current mortgage was closed before June 1, 2009 and has not been refinanced in last 3 years. After eligibility is established, one should start contacting lenders, including their current mortgage provider. If you’re loan is a Freddie Mac loan, you only need to talk with your current lender. Contact lenders to see if they are participants in the program, and what options are there for you. Contact a variety of banks and lenders to make sure your getting the best mortgage refinancing possible.

It’s a pretty straight forward process once you’ve found a lender.

Why Choose HARP Mortgage?

One of the biggest reasons to choose Home Affordable Refinance Program (HARP) is so homeowners who are upside down on their mortgage can get refinancing. There are other benefits for choosing a HARP mortgage, including: lower rates and closing costs. Often there’s no appraisal required, the underwriting is more lenient, and there’s no mortgage insurance.