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HARP - Making Home AffordableFannie Mae and Freddie Mac and have released new information about updates to the HARP 2.0 (Home Affordable Refinance Program). This is an update to the original HARP program that was introduced in 2009 and intended to help homeowners with Fannie Mae or Freddie Mac mortgages refinance their loans to the current low market rates even if they owed more than their homes were currently worth.

The goal of HARP is to help the millions of homeowners that cannot refinance because their homes lost value when the housing bubble burst. The original program let homeowners refinance up to 125 percent of their current home value. Unfortunately many borrowers did not meet the 125% loan to value requirement. HARP 2.0 eases some of the requirements so that more homeowners can participate, perhaps as many as 1.5 million more borrowers will now be able to dramatically lower their mortgage interest rate!

HARP 2.0 Basics

  1. HARP is extended through December 31, 2013, it was originally scheduled to end June 2012. 
  2. Borrowers must be in a Fannie Mae (Fannie Mae lookup) or a Freddie Mac (Freddie Mac lookup) loan originated before May 31, 2009 to qualify. 
  3. Loan must have loan-to-value ratio of greater than 80%.
  4. There is no loan to value cap on fixed loans 30 years and below, while ARMs have a cap of 105% LTV. 
  5. A new appraisal may not be needed. 
  6. Borrowers must have perfect payment record for past 6 months (no 30 day or greater late payments) and only 1 late payment in last 12 months. Originally HARP did not allow any late payments in last 12 month period. 
  7. Loans 20 years or less get “loan level price adjustments” of 0% and .75% on ARMs and loans greater than 20 years. 

Do I Qualify for HARP 2.0 and How Can I Benefit If I Do?

We can help analyze your current loan and financial snapshot to help you understand if you qualify for HARP. If you qualify, you may be able to dramatically decrease your mortgage rate and lower your monthly payments.

More importantly, rates are near all time historical lows, which means there is no better time than now to contact us for FREE professional financial analysis to make sure you’re taking advantage of every possible opportunity to save money on your mortgage.