HARP refinance loans can help you save money and stay in your home. Millions of Americans have seen their hours reduced, jobs lost, or family savings dried up with the down economy of the past several years. This has left families looking for ways to save money. A home loan is typically the biggest expense for most families. Refinancing to reduce the interest rate and lower the monthly payment is a fantastic way to keep more money in the bank for things like groceries and health insurance.
The challenge many homeowners face is the declining housing market has made refinancing difficult. When home values go down the lack of equity in a property can make lenders turn down your application for refinancing. The HARP loan program was designed to help. It is written into the guidelines that you need less than 20% equity in order to qualify. This is the opposite of most traditional loan programs that want you to have equity in order to qualify for the best interest rates.
The HARP program was created to give homeowners the option of staying in their home. By reducing the interest rate they take the logical approach – a lower payment increases the likelihood of a borrower being able to make the payment on time. Rather than increasing the risk of the loan defaulting, the lender is decreasing that risk by making the loan affordable. This is an ideal solution for families that want to save but didn’t think they could qualify due to a decrease in their homes value.
Homeowners that live in a multi-unit home can also use the HARP program. If you live in a duplex or triplex you can still refinance using this program. Loans can be more difficult to get on multi-unit properties so this refinance program is a wonderful solution. In order to find out if you qualify for a HARP refinance speak with a mortgage banker today and discuss your individual loan scenario.
HARP Loan Program Qualifying Factors
1. Equity. You need to have less than 20% equity in your home.
2. Ownership. The loan must be owned by Fannie Mae or Freddie Mac.
3. Payments. Your payments need to have been made on time for the past six months with no more than one 30 day late in the six months prior to that.
4. Date. Your loan must have been acquired by Fannie Mae or Freddie Mac on or before May 31st, 2009.
A mortgage lender can review all of your refinance options to determine which loan program will save you the most money, both now and in the long run. The goal with the HARP loan program is to provide homeowners with a solution for reducing their interest rate, while helping them to stay in their home and avoid foreclosure. The key is to refinance before you become late on your payment. If your budget is getting tight, and you are worried about being able to afford your payment, contact a mortgage banker today before it is too late.
