The FHA has decided to once again extend the Home Affordable Refinance Program (aka HARP.) Perhaps now is the time to look into whether or not this is an option for you. It is a program created to help the millions of Americans who have had trouble refinancing due to decreased home values. When it is successful, it has similarities to a loan modification, but you actually get new mortgage with new terms (lower interest and lower monthly payments.)
HARP may be an option if:
- You are current on your mortgage payments (no 30 day late payments over the past year)
- Your home is worth less than what you paid for it.
- Your first mortgage is not greater than 125% of your home's current market value.
- Your loan is owned by Fannie Mae or Freddie Mac.
The best way to find out if you qualify for a Home Affordable Refinance Program loan, is to contact a HARP lender. Not every lender is equipped to assist you. Here is a way to check and see if you quality for a HARP loan through a trusted HARP mortgage lender. Simply complete this mini-application online.