What You Need to Know About the Home Affordable Refinance Program
The Home Affordable Refinance Program, also known as HARP, is a mortgage program that individuals can use to refinance their properties. Home Affordable Refinance Program is ideal for people who are up to date on their mortgage payments, but are having a hard time qualifying for refinance loans. To help make your mortgage payments more affordable, you can use HARP to lower your monthly payments. All you have to do is fill out a loan application and undergo the underwriting process. There are refinance fees associated with the loan that you will have to pay.
Who is Eligible for Home Affordable Refinance Program?
There are certain requirements that you will have to meet in order to qualify for the Home Affordable Refinance Program. Below are the standard criteria for getting approval for HARP:
- Your mortgage has to be owned or guaranteed by Fannie Mae or Freddie Mac.
- Your mortgage should have been purchased by Freddie Mac or Fannie Mae on or before May 31, 2009.
- You can’t already have a HARP refinance loan on your mortgage, unless you have a Fannie Mae loan that was refinanced between March and May of 2009.
- The LTV (Loan to Value) ratio of your mortgage must currently be more than 80%.
- You have to be current on your mortgage payments at the time you sign up for HARP and have a good payment history for the past 12 months.
There are other factors that may play a part in whether or not you are able to receive a loan from HARP. When you go to apply for the loan, you will be able to find out more details regarding your specific situation.
Is HARP Available Everywhere?
If you’re thinking about signing up for the Home Affordable Refinance Program, you should ask you’re the company that holds your mortgage about their participation in HARP. Not all mortgage servicers are a part of this program. You can also get in touch with Fannie Mae or Freddie Mac in order to determine whether you would be eligible for HARP.
How to Get a HARP Refinance on Your Home
The first thing you will need to do is find out whether your mortgage is owned or guaranteed by Fannie Mae or Freddie Mac. You can use an Internet loan lookup tool to find out, if you’re unsure. Afterward, you will need to contact your mortgage servicer, or one that is approved by Freddie Mac or Fannie Mae, to find out about the home Affordable Refinance Program. Make sure that you compare the rates and costs that are being offered by other mortgage companies to see who offers the best refinance terms.
Why Refinance Your Mortgage with HARP?
Sometimes, payments can get out of hand, but before they get too uncontrollable, you should seek to sign up with HARP to see if you qualify to have a loan taken out against your property. Like with any refinance loan, you will be able to pay off your primary mortgage and receive lower monthly payments for the refinance loan. What’s great about HARP is that those who don’t qualify for other refinance loans may be eligible through HARP. Just make sure that you don’t miss out on any monthly payments before you decide to sign up of HARP. If you begin missing payments, you won’t be eligible to have you mortgage refinanced to a lower price.
Other Refinance Programs
If you don’t qualify for HARP, you may be able to apply for other programs like the Making Home Affordable program, also known as MHA. You will have to contact your mortgage servicer to determine if this program available. MHA will enable homeowners to lower their mortgage payments, reduce the interest rate on their loan and if needed, will help you move from your home if your house is foreclosed on.
If you decide to look for other refinance loans, make sure to be wary of predatory lenders. Don’t accept terms that are unreasonable or interest rates that are too high. You can work with a mortgage loan originator to help you determine which programs are available to you and which of them you’d be eligible for. You can shop for refinance loans, such as the Home Affordable Refinance Program, online and can even receive quotes. You can go to certain web sites to use a calculator to determine how much you’d likely receive for your mortgage loan.