The Home Affordable Refinance Program (HARP) is a federal loan program designed by the Federal Housing Finance Agency (FHFA) to help borrowers with underwater and near-underwater home loans to refinance their mortgages. The program was launched in March 2009 and enables homeowners with little or no equity to refinance their mortgage at more affordable rates without mortgage insurance. Therefore, if you qualify for a HARP Refinance Loan you can get a more stable or a more affordable rate and increase your savings.
The Benefits of HARP Refinance Loan
If you are current on your mortgage payments and you cannot refinance due to the falling housing prices and the unstable housing market, HARP is a good solution for you. You have the option to refinance to a lower interest rate loan that will lower your monthly payment or change from an adjustable rate mortgage (ARM) to a fixed-rate and know how much money you have to pay every month and not have to worry about the payment or rate adjusting in the future.
Below you can briefly see the benefits of a HARP Refinance Loan:
- Lower interest rate
- Change from an adjustable rate mortgage (ARM) to a fixed-rate
- Lower monthly payments
- Some lenders will waive appraisal
- You increase your savings through lower mortgage payments
- You increase your investments through lower mortgage payments
- You pay off your debt faster through lower mortgage payments
When looking to complete a Harp Loan Refinance it is best to speak with a licensed loan specialist to get exact program and underwriting details. Although the information below will supply you with some of the basics concerning the harp loan eligibility
Eligibility & Guidelines
- Properties that qualify are 1-unit primary residence, 1-unit second home, 1 to 4-unit investment property.
- Your mortgage has to be owned or guaranteed by Freddie Mac or Fannie Mae.
- Your mortgage must have been originated on or before May 31, 2009.
- You should not have a previous HARP refinance on the mortgage.
- You must be current on your payments.