Getting a Deal on Your Existing Home With HARP
Since 2009, the Home Affordable Refinance Program (HARP) has been helping American homeowners whose mortgages are carried by the two federally backed lenders (Fannie Mae and Freddie Mac) refinance their existing mortgages to capture a lower interest rates, lower their payments, and even capitalize on some of the equity they may have built up.
The HARP loan refinancing program is a great way to get a great deal on what you’ve already purchased.
Interest rates are still low but climbing, following the Great Recession, and further, they are expected to continue to climb over the years to come. This may eventually drive prices to stabilize as inventory levels improve in the nation’s hottest markets.
One thing is for certain: if your current interest rate is higher than what’s being offered, now may be a good time for you to refinance your mortgage and capitalize on the current rates before they go up.
How the HARP Refinancing Program Works
HARP Refinance Loans may be available to you even if you owe more on your house than it is worth. Further, they do not always require income verification or a new appraisal as a part of the loan approval process.
In some cases, you may even be able to refinance your home if you are currently “underwater.” The Home Affordable Refinance Program Loan is intended to help homeowners improve on their existing financing.
Qualifying for HARP Refinance Loans
Although HARP Refinance Loans may be available to borrowers who owe more on their home than it is worth, the loan-to-value ratio must be greater than 80%. Additionally, in order to qualify:
- The borrower must be current on their mortgage.
- All payments within the last six months of the loan term must have been made within thirty days of their due date, and only one payment out of the last twelve can have been more than thirty days late.
- The home must be either the borrower’s primary residence, a one-unit second home, or a one-to-four unit rental property.
- The loan must have been originated before the end of May, 2009 and be currently carried by either Freddie Mac or Fannie Mae.
There are tools on the HARP website to help you determine if you should be able to qualify for HARP refinancing.
It Could Be a Great Time to Take Advantage of HARP
With mortgage loan rates still low but climbing, this could be a compelling opportunity to refinance and capture a lower payment, lower interest rate, and whatever equity you may be able to pull out of your home.
The HARP refinance program has been getting steadily better since 2009, and qualifying for the program has never been easier. So, even if you’ve been rejected for a HARP loan in the past, you may be able to qualify for one now. Get in touch with Options Financial today for details.