HARP, also known as the Home Affordable Refinance Program was created by the government to help many homeowners lower their monthly mortgage payments and stay in their homes. If you are a homeowner who is currently underwater on their mortgage, HARP may be able to help you too, even if you currently owe more on your existing loan than your home is currently worth. Since it was first created in 2009, the program experienced many changes which have allowed it to help more homeowners refinance their existing mortgage.
While HARP has proven to be beneficial for homeowners, many still have questions about the program itself and what it is designed to do. To help you understand the program and what it consists of, Mr. Graziosi has put together a list of the most commonly asked questions regarding HARP.
- Can I Refinance Through HARP If I Have An Adjustable-Rate Mortgage – The answer to this question is yes. In fact, refinancing through HARP can help you obtain a more stable fixed-rate mortgage. If you’re a homeowner who is approaching a payment reset, refinancing through HARP now will lock you into a low fixed-rate before they go any higher.
- Have Recent Changes To HARP Made It Easier To Be Eligible Now – Recently the program experienced significant changes, but the major improvement to the program was that the limit on the amount that they could be underwater was removed. Because of this recent change, more homeowners may be eligible to seek refinancing through the program than before.
- Is HARP My Only Option – HARP is currently one of many different refinancing options available for homeowners. What makes HARP unique is that it is the only program available that allows borrowers who have little to no equity in their home to take advantage of the lower interest rates we are currently seeing.
- During A HARP Refinance Can I Remove Or Add Someone On The Loan – This is a common question among those who are interested in refinancing through HARP. The answer is yes, during the refinancing process changes can be made and borrowers can either add or remove someone as long as one of the original borrowers remains on the loan.
- How Do I Determine Whether Freddie Mac or Fannie Mae Owns My Loan – This is a relatively easy step for homeowners interested in refinancing their mortgage. The first thing you should do is visit the following websites to determine if your loan is owned by one of the lenders mentioned above. http://freddiemac.com/mymortgage http://knowyouroptions.com/loanlookup
- Will I Have To Make A Down Payment If I’m Currently Underwater – The answer to this question is no. There is no down payment required when you refinance through HARP, many lenders will often allow you to include your closing costs in the new loan to avoid any out-of-pocket expenses.