When the real estate market suffered a severe downward turn in 2009, the government created the Home Affordable Refinance Program or HARP. HARP refinance was a way to help homeowners save their homes rather than losing them if they were underwater in their mortgages. Today, two new government-backed options offer homeowners the same types of benefits as HARP refinance.
How Can I Use HARP to Refinance My Mortgage?
The government created HARP as a way to keep people from losing their homes. Through the years, they made modifications to the program so that homeowners could refinance up to 125 percent of the value of their homes without primary mortgage insurance. They extended the program twice, and it ended in 2018. The need for HARP had decreased as fewer people were underwater with their mortgages. While HARP refinance is no longer an option, other alternatives are just as viable.
Two programs take the place of HARP refinance. These include the Fannie Mae High LTV Refinance Option and Freddie Mac Enhanced Relief Refinance. These programs offer benefits of lower monthly payments, reduced interest rates, and shorter loan lengths. You can also convert your adjustable rate mortgage to a fixed term mortgage. The main benefit of these programs is that you can build equity in your home more quickly and therefore get out from under an upside-down mortgage more quickly.
What Are the Requirements for Refinancing?
HARP refinance requirements were slightly different than the requirements for the new refinancing programs. If you already refinanced with HARP, you don’t qualify for these new programs. It is important to note that your loan must be at least 15 months old before you can refinance with either of the latest programs. They want to ensure that you are not repeatedly refinancing, which can lead to predatory lending. The loan programs require a minimum LTV ratio of 97.01 percent for single-family homes.
How to Refinance Your Mortgage
Refinancing your mortgage can be complicated and stressful. You need guidance from a professional to help you through the process. At The Rate Helpers, we have a team of experienced professionals who are available to assist with the entire process. We will help determine whether you qualify for a refinance program and will give you your options so you can make an educated decision. Your home is one of the most significant purchases you will ever make in your lifetime, and you want to get it right. We provide a dedicated team who are available to help you around the clock. We help with the short-term escrow and down payments as well. We offer customized loan programs that will meet your needs and your budget. If you are having trouble making your mortgage payments, you may benefit from refinancing. Refinancing your mortgage can save you from losing your home to foreclosure. Contact our expert team to assist you with all of your mortgages and refinance needs. Visit our online website to learn more about our programs.Harp Refinance