Should you refinance your mortgage through HARP before it expires?
If you’re struggling with your mortgage payments, there are several options for relief that may be available to you. One of these is the Home Affordable Refinance Program (HARP), a federal program for homeowners that is set to expire on September 30, 2017.
HARP loans are designed to help homeowners who are underwater (those who owe more than the value of their home) or near-underwater refinance their mortgages. No minimum credit score is required, and eligible borrowers may be able to save as much as $2,400/year with HARP. First offered in 2009, the program’s requirements have since been loosened to allow more homeowners to qualify.
If you could use some help with your mortgage, it’s worth checking to see if you qualify for HARP.
Eligibility requirements
You may be eligible for a HARP loan if you meet the following requirements:
- You are current on your mortgage, with no 30-day+ late payments in the last six months and no more than one in the past 12 months.
- Your home is your primary residence, a 1-unit second home or a 1- to 4-unit investment property.
- Your loan is owned by Freddie Mac or Fannie Mae (look up Freddie loans here or call 800-FREDDIE and look up Fannie loans here or call 800-7FANNIE).
- Your loan was originated on or before May 31, 2009. This date is available using the look-up tools above.
- Your current loan-to-value (LTV) ratio is greater than 80%. Calculate your LTV ratio with this tool, or contact your mortgage professional to help determine your current LTV.
Possible benefits
A HARP loan could help you in the following ways:
- Lowering your mortgage rate
- Reducing your loan term
- Transferring your mortgage from an adjustable-rate loan to a fixed-rate loan
- Bundling the closing costs into the new loan
- Requiring less paperwork than a standard refinance, resulting in a smoother application process (available through December 31, 2016)
How to apply
Contact me to find out the best refinancing options that are available to you.