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What is a Harp Refinance?
HARP
is an acronym, which stands for, the Home Affordable
Refinance Program. It is a federal government program
offered by the Department of the Treasury and Housing
and Urban Development. It came to be in March 2009
in an effort to provide assistance to approximately
5 million homeowners holding underwater mortgages.
By the end of August 2010, only 894,000 had taken
advantage of HARP. Through the Obama administration,
it was revamped with the intent of reaching more underwater
homeowners. The new program is HARP 2.0 and went in
to effect in December 2011. Here is a brief summary
of the new changes:
- While previous loan-to-value limits were set at
125%, now with HARP 2.0, borrowers can refinance
regardless of how much their homes have decreased
in value.
- The appraisal and loan underwriting requirements
have been revoked, which has made the refinancing
process much easier.
-
The previous risk-based fees for homeowners who wanted
to refinance with a shorter-term loan have either
been eliminated or greatly reduced.
- The deadline to apply for a HARP refinancing mortgage
has been extended to December 31, 2013.
- To be eligible for the HARP program, your mortgage
must be held by either Fannie Mae or Freddie Mac.
Be aware that not all mortgage providers participate
in HARP. Contact Freddie Mac or Fannie Mae for assistance
in determining your eligibility:
www.fanniemae.com/loanlookup
or www.freddiemac.com/mymortgage
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