Friday 23 May 2014

Home Affordable Refinance Program

With the rising inflation rate and poor housing market, anyone can get in a deep neck situation with their mortgage loans. In such scenario, Home Affordable Refinance Program (HARP) can come to their rescue. In the United States, HARP was set up by the Federal Housing Finance Agency in 2009 as a federal program to homeowners who are looking for refinancing their mortgage loans. These are provided to homeowners who are ‘underwater’ and ‘near-underwater’ conditions with their home mortgage loans.

The program aims at helping homeowners with mortgage refinance whose mortgage payments are current but are not able to refinance their mortgage loans due to the U.S. housing market correction.

Some of the qualifying criteria to apply for HARP are:

  1. Regular payments for the past 12 months
  1. The loan to value ratio at the time of applying should be more than 80 percent
  1. Mortgage loan should be backed by Freddie Mac or Fannie Mae
  1. Mortgage must have closed on or finalized on or before May 31, 2009.
  1. Mortgage loan has not been refinanced in the last 3 years.

So, if you have been looking to refinance your mortgage loan but was unable to do so, HARP can come to your rescue and help save a substantial amount in your monthly payments.

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