HARP stands for the Home Affordable Refinance Program. It was created by the Federal Housing Finance Agency for the specific purpose of helping homeowners who had a high loan to value ratio in excess of 80%. The HARP loan allows people to refinance their home, at a lower interest rate and not have to pay Private Mortgage Insurance (PMI).
For example: Lets say you bought your home for $160,000, but due to market decline it’s now worth $100,000 and, you still owe $120,000 on the home. In this situation, you as the homeowner have a Loan To Value Ratio of 120%. Under other loan programs, you’d be required to pay the PMI - Private Mortgage Insurance fee which would add more costs to the loan and increase the payment which could cause you not to qualify for refinancing.
If you’re in a similar situation, the HARP loan program may be a good solution for you.Check to see if you meet these basic requirements:
- Are you current on your mortgage with no 30+ day late payments in the last six months and no longer than the past 12 months?
- Is this your primary residence or investment property?
- Is your current home loan owned by Freddie Mac or Fannie Mae?
- Was your loan originated on or before May 31, 2009?
- What is the current LTV (Loan To Value) ration of your home? It must be more than 80%.
If you meet these requirements give us a call today.