Read How HARP Program Can Help You to Refinance Your Mortgage

by Dori Tery on June 15, 2013

Can the HARP Program help you to reduce your current high mortgage payments?

Many house loan owners hope to refinance their debt but most of them fail for many reasons. Whether you are watching news on financial channels like CNBC or Bloomberg TV, or you are listening to the local radio news, we are sure that you have been introduced to the many of government financial programs are setup to help all the home owners who cannot refinance their mortgage and enjoy the benefit of today low mortgage rates. The “Harp loan program” is a great chance for us, especially for those owning the mortgages from either Fannie Mae or Freddie Mac. The Home Affordable Refinance Program (HARP) can help those to refinance their loan due to declining the value of house or owing more than the market price.

What is the HARP Program?

harp program

The Harp Program is a special program for property owners whose properties have lost their price value in the past few years and cause them fail to meet refinance loan requirements. Under most of the regulation conditions, all the refinance banks will request that the equity or value of your house must be always greater than loan mortgage balance before they can approve the mortgage refinance application. However, if your property value had dropped significantly during the past financial crisis, that is impossible. Therefore, government introduces the Home affordable Refinance Program (Harp) to help the home owners facing this dilemma.

How to qualify for this refinance mortgage program?

Firstly, your current loan mortgage must be either owned or guaranteed by Fannie Mae or Freddie Mac. Moreover, you must meet the following conditions:
– You cannot own other government loans like VA, FHA, or USDA loan
– You were never have the late payment record of your mortgage payment in the past one year
– You are still the owner of current mortgage payment
– You need to prove that your house value has dropped lesser that your mortgage
– The outstanding amount of your loan should be 125% less than current value of your house
– You need to show you are afford to pay for the new payments for your refinance mortgage

You need to submit a loan application, even though you are qualified for a refinance mortgage under the HARP Program. Besides, you need to pay a small amount of handling fee, just as if you were receiving refinance through other commercial financial channels. The Harp loan will be guaranteed to perceive if you are competent to get a loan in general. Just because you fulfil the terms and conditions mentioned above, there is no 100% guarantee that you will be refinanced under the HARP Program if you cannot meet the requirements for a refinance in the first place!

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