Are you familiar with the Home Affordable Refinance Program (HARP)? The HARP Program was designed to help homeowners get a refinance loan who ordinarily might not qualify for traditional lending. HARP rates are very low right now, and a home refinance loan may have never been closer for you! Contact The Rate Helpers to find out more about HARP, or start your application online today.
Today, many homeowners are concerned about the value of their properties. Under traditional lending guidelines, The Rate Helpers would have to consider the restrictions on Loan to Value. We can determine the Loan to Value by calculating the loan amount to the value of your home.
Determining Your Loan
For example, let's say your loan balance is $180k, and your home value is $200k: the Loan To Value would be 90%. With traditional lending guidelines, the loan amount must always be less than the value of the property, but HARP restrictions are different. Therefore, The Rate Helpers may still be able to help you refinance, even if your loan balance is greater than the current value of your property. Here's how the HARP program may be able to help you:
If we compare with a current loan at $200k at a 4.5% rate, you have an estimated monthly payment of $1013.37. On a 30-year HARP refinance, at a loan amount of $200k and an estimated loan rate of 3.5%, you would have a monthly payment of $898.09. That's more than a $100 savings each month!
The HARP program can also save you money by reducing the length of your term. For example, let's now say that you have a 20-year HARP refinance with a loan amount at $200k and a proposed rate of 3.375%, your monthly mortgage payment would be $1,147.11. This way, you get your loan paid back ten years quicker.
Do I Qualify for the HARP Program?
To qualify for a HARP refinance, you must be current on all of your loan payments and have a loan that was delivered to Fanny Mae before May 31, 2014. Remember, interest rates are currently very low, so you may want to take advantage of this and apply for your HARP refinance while the rates are great. You can contact a mortgage specialist at The Rate Helpers to ask any questions, complete your application, or just see if you qualify for HARP.
You may also apply online right here on this website, or you can come in and visit us in our branch office.
The HARP Program is Very Flexible
Although the HARP program has very strict qualification guidelines, the program itself is actually quite flexible once a person has been approved. For example, you can refinance with a HARP loan even if you have a second mortgage and even if you have no equity in your home. Further, you may apply again for consideration, even if you have been turned down in the past.Harp Program