Even though our housing market is looking up these days, there are still home owners who are struggling to make ends meet. Wouldn’t it be great if you could refinance your mortgage at a much lower interest rate even if your home is worth less than what you presently owe? There is a government loan program out there and it has been extended until December 31st, 2014.
The first thing that you need to do is see if you have a Freddie Mac or Fannie Mae mortgage. You can do this by going to the Makinghomeaffordable.gov website and click on the Tools button. If your mortgage is owned by either Freddie or Fannie then you may be eligible for the Home Affordable Refinance Program (HARP).
What is the HARP Refinance program about? Here is some information that can help you refinance your present home mortgage by reducing your present interest rate if you are eligible.
What is a Refinance?
With this option, you receive a completely new mortgage with new terms, interest rate and monthly payments. The new loan completely replaces your current mortgage and may lower your payment, which could help improve your monthly financial situation.
Home Affordable Refinance Program (HARP)
If you are current on your mortgage and have been unable to obtain a traditional refinance because the value of your home has declined, you may be eligible to refinance through this program. HARP is designed to help you refinance into a new affordable, more stable mortgage. The HARP loan is considered a new loan and will require a loan application and underwriting process. Loan refinance fees will apply.
Eligibility
You may be eligible to apply if you meet all of the following:
You have a mortgage owned or guaranteed by Fannie Mae or Freddie Mac.
The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March – May 2009.
The current loan to value ratio must be greater than 80%.
The borrower must be current on the mortgage at the time of the refinance with a good payment history in the past 12 months.
The refinance will improve the long term affordability or stability of your mortgage.
You have the ability to make the new payments.
Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you qualify for HARP.
Program Availability
The HARP program is offered by many servicers. Homeowners should check with their mortgage servicer to determine if they are participating in HARP. If their mortgage servicer is not participating, the homeowner may contact other lenders that participate in HARP to determine if they are eligible for a refinance.
For More Information
Contact your current lender first as they may have incentives that will keep closing cost affordable. If you have additional questions about getting mortgage help, contact a housing advisor at (888 -995-HOPE).
Betty Bondi
Bondi Realty Group
203-899-9990