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Streamline Refinance Program to Replace HARP, harp loan program.#Harp #loan #program


Streamline Refinance Program to Replace HARP

Homeowners with a high loan-to-value or who are underwater and owe more on their mortgage than their home is worth will have a new refinance option in October 2017. While the details are preliminary, Fannie Mae’s High Loan-to-Value Refinance Option and Freddie Mac’s Enhanced Relief Refinance are set to replace the existing Home Affordable Refinance Program (HARP) when it ends next year. More than 3.4 million homeowners have refinanced with HARP since the program was introduced, according to the Federal Housing Finance Agency, which says another 300,000 homeowners are eligible for HARP now.

Note: On August 17, 2017, the FHFA extended the HARP program for another 15 months, and it will now expire on December 31, 2018. This Streamline Refinance program will run concurrently.

“We wanted to make sure that when HARP expires there would be a program in place to help people who have less than five percent equity and can’t qualify for a standard refinance,” says Alan Hitchcock, director of product development for Freddie Mac in Washington, D.C.

According to CoreLogic , a global provider of property data, approximately 3.6 million households were underwater on their mortgages in the second quarter of 2016, which represents 7.1 percent of all homes with a mortgage. In addition, another 965,000 homeowners (1.9 percent of all homes with a mortgage) have less than five percent in home equity, which typically prevents them from qualifying for a refinance.

“While it’s not clear that the universe of people who will take advantage of this program is that large, the principal is that allowing people to refinance can keep them in their homes and prevent a foreclosure,” A.W. Pickel, president of the Midwestern division of AmCap Mortgage in Kansas City, Mo. “It can help in some markets where people haven’t experienced the property appreciation of other markets, so they are still at a high loan-to-value and have a mortgage with a higher interest rate.”

Hitchcock says that borrowers who have little home equity are at risk from one unpredictable event, such as an illness or a job loss, when they can’t refinance.

“This program should make it easier for borrowers stay in their homes and to stay current on their mortgage payments,” he says.

Streamline refinance program differs from HARP

The biggest change of the new streamline refinance programs is that they don’t have an expiration date, says Keith Gumbinger, vice president of HSH.com.

“It should be a comfort to borrowers who are exposed to the vagaries of the market that they are protected from future downturns, especially if they bought a home at the height of the market,” says Gumbinger.

Hitchcock says that the new streamline refinance is meant to be a “forever program” to help homeowners in all kinds of market cycles.

A second difference between the new programs and HARP is that there is no requirement for a particular start date for the loan you are refinancing.

“HARP was limited to borrowers who had taken out their loan before June 1, 2009, and this is for anyone with an underwater loan regardless of when they took it out,” says Gumbinger.

Pickel says that another difference from HARP and a benefit to borrowers is that they can use the new refinance programs more than once. However, borrowers cannot refinance a loan they refinanced under HARP with this new program.

Refinance program requirements

Similar to HARP, borrowers must benefit from the refinance in at least one way to qualify for the program, such as:

  • A lower monthly principal and interest payment
  • A lower interest rate
  • A shorter loan term
  • A more stable mortgage, such as switching from an adjustable rate mortgage to a fixed-rate loan

Additionally, borrowers must be current on their mortgage payments with no 30-day delinquencies in the most recent six months and no more than one 30-day delinquency in the past 12 months. Only existing Fannie Mae loans can be refinanced into a new Fannie Mae loan. That rule is the same for Freddie Mac loans.

“We also have a loan-to-value minimum that varies according to whether the borrowers own one or more units in their residence,” says Hitchcock. “For a one-unit residence, the minimum loan-to-value would be 95.01 percent or higher. If they have five percent or more in equity the borrowers will have to use a different refinance program.”

Similar to HARP, the streamline refinance programs do not have a minimum credit score requirement, a maximum debt-to-income ratio or a maximum loan-to-value and an appraisal won’t be required, says Hitchcock.

“There are borrowers out there who still have mortgages with interest rates in the five or six percent range who could benefit from this program,” says Gumbinger. “And it could help people if there’s another economic downturn because they could refinance into another 30-year loan to extend their repayment period. Their loan balance would be lower, too, depending on how long they have owned their home.”

Gumbinger says this is a niche program aimed at markets that may never recover completely from the housing crisis, such as Las Vegas, but it also provides support for homeowners in case of problems in the future.

“This is a good program that gives people who are making their mortgage payments an opportunity to lower their housing costs,” says Gumbinger.


Home Affordable Refinance Program (HARP): Fannie Mae, harp loan program.#Harp #loan #program


Home Affordable Refinance Program (HARP)

– Ruben of Springfield, VA, saved $763 per month. Read the Full Story »

HARP is unique—it’s the only refinance program that enables eligible borrowers with little to no equity in their homes to take advantage of low interest rates and other refinancing benefits. There have been several changes to HARP, but the primary enhancement removed the limit on the amount that homeowners could be “underwater” (owe more on their mortgage than their home is worth). With that change, many homeowners who were not eligible will now qualify. Program ends December 31, 2018.

HARP may be an option if:

  • You have had a good payment history for the past 12 months. That means having no late payments in the last 6 months and no more than one 30-day late payment from 6 to 12 months ago.
  • Your home is your primary residence, 2nd home or investment property.
  • Your home value has decreased.
  • You have limited equity or your first mortgage exceeds the current market value of the home (i.e., your loan-to-value ratio must be 80% to be eligible).
  • Your loan is owned or guaranteed by Fannie Mae or Freddie Mac. Check the Fannie Mae Loan Lookup tool.
  • Your loan was closed on or before May 31, 2009 (this date can be found using the loan lookup results).

Take the HARP Quiz to see if you may qualify. For more information about HARP eligibility and requirements, go to HARP.gov or visit the Fannie Mae Loan Lookup tool.

Top reasons to refinance with HARP

  • Lower your monthly payment
  • Reduce your interest rate
  • Get a fixed-rate mortgage that won’t change over time
  • Build equity faster—shorter term options may be available
  • Save time and money with usually no appraisal required

Next steps

If you qualify to refinance your mortgage through HARP, you’ll go through an application, approval and closing process (similar to when you got your original mortgage). A HARP lender will work with you through every step, and will help determine if HARP meets your specific needs.

Harp loan program

Gather your financial information—Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:

  • your mortgage statements, including information on a second mortgage (if applicable);
  • your other monthly debt payments (e.g., car or student loans, credit card payments); and
  • your income details (paystubs and income tax returns).

Harp loan program

Contact Your Mortgage Company and ask if they are an approved HARP lender. Or, contact a HARP lender—tell them you are interested in refinancing and you want to see if you qualify for HARP.

It’s important to act quickly. As soon as you think you may have trouble making your mortgage payments or you think you want to refinance, contact your mortgage company to see if you are eligible for this option. If you need further assistance (before or after contacting your mortgage company), contact a Housing Counselor. Homeowners with a Fannie Mae-owned loan should contact one of our Fannie Mae Mortgage Help Network partners. English and Spanish advisors are available, and all services offered by the Fannie Mae Mortgage Help Network are FREE.

Frequently asked questions about the Home Affordable Refinance Program (HARP)

HARP is the Refinancing Solution You Need

HARP has been expanded to help more homeowners qualify for refinancing their mortgage—even those with little or no equity. With HARP you may take advantage of low interest rates and other refinancing benefits even if the value of your home has declined and you owe more than your home is worth. The questions and answers below will help you better understand how this program works.

1. What is HARP?

HARP stands for the Home Affordable Refinance Program. It was introduced by the Federal Housing Finance Agency (FHFA) and the Department of the Treasury in early 2009 as part of the federal government’s Making Home Affordable™ program. HARP provides eligible homeowners, who may not otherwise qualify for refinancing because of declining home values, the ability to refinance their mortgage into a lower interest rate and/or more stable mortgage product. The program was enhanced in 2011 to allow more eligible homeowners to refinance.

Making Home Affordable is a trademark of the United States Department of the Treasury.

2. What does it mean to “refinance” my mortgage?

When you refinance your mortgage, you are applying for a new mortgage, which replaces your current home loan.

3. What enhancements were made to HARP that may make me eligible now?

There were several changes to HARP, but the primary enhancement removed the limit on the amount that homeowners could be “underwater” (owe more on their mortgage than their home is worth). With that change, many homeowners who were not eligible will now qualify.

4. What if I have an adjustable-rate mortgage (ARM)?

HARP allows you to replace your adjustable-rate mortgage to a more stable fixed-rate mortgage. Refinancing may provide you with a lower monthly payment and allow you to avoid the sometimes large payment increase that comes once your ARM’s initial rate ends as the rate may increase over time. The stability of a fixed monthly payment will give you security in knowing what your principal and interest payment will be every month.

5. Is HARP the only refinance program available?

HARP is one of several refinancing options available to eligible homeowners. But HARP is unique—it’s the only refinance program that enables eligible borrowers with little to no equity in their homes to take advantage of low interest rates and other refinancing benefits.

6. How can I find out whether my loan is owned by Fannie Mae or Freddie Mac?

Only mortgages owned or guaranteed by either Fannie Mae or Freddie Mac are eligible for refinance under HARP. You can confirm that your mortgage is owned by either Fannie Mae or Freddie Mac by checking the following Web sites:

7. How does the HARP refinance process work?

If you qualify to refinance your mortgage through HARP, you’ll go through an application, approval and closing process (similar to when you got your original mortgage). A HARP Lender will work with you through every step, and will help determine if HARP meets your specific needs. Contact Your Mortgage Company and ask if they are an approved HARP lender. Or, contact a HARP lender—tell them you are interested in Refinancing and you want to see if you qualify for HARP.

8. What if I have been turned down for refinancing before?

The guidelines for HARP may have changed since you last applied, so you may qualify.

9. Will I have to pay closing costs?

Maybe, but closing costs vary by state and size of your loan. Closing costs might be rolled into your new loan so you wouldn’t have to pay these costs out of pocket at closing. Check with a HARP lender to learn more.

10. Is it worth refinancing with HARP?

On average, homeowners are saving over $250* per month on their mortgage payments.

*Average actual monthly payment savings based on total 2012 Fannie Mae HARP mortgage volume. Your monthly savings may vary based on the specific terms of the loan selected, the interest rate, APR and other factors. All loans are subject to credit approval. Contact a HARP lender for details.

11. What if my income is low? Or my income has decreased?

In most cases, it doesn’t matter. You still may qualify.

12. Do I need a new appraisal?

In most cases, no. With HARP, an appraisal is not generally required, so you save time and money.

13. If I owe more on my home than it’s worth, will I have to make a down payment before I can refinance?

No. You do not need to pay more money down on your mortgage in order to refinance with HARP.

14. Do I have to refinance for another 30 years?

No. Shorter loan terms (15-years and 20-years) may be available so you can start paying down your mortgage quicker and building equity faster.

If the new loan is secured by your primary residence and the unpaid principal balance exceeds the property’s fair market value, the interest on the portion of the unpaid principal balance that is greater than the fair market value of your primary residence is not deductible for federal income tax purposes. You should consult a tax advisor for further information regarding the deductibility of interest and charges.

Fannie Mae and Freddie Mac have adopted changes to the Home Affordable Refinance Program (HARP) and you may be eligible to take advantage of these changes. If your mortgage is owned or guaranteed by either Fannie Mae or Freddie Mac, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP. You can determine whether your mortgage is owned by either Fannie Mae or Freddie Mac by checking the following Web sites: knowyouroptions.com/loanlookup or freddiemac.com/mymortgage.

What homeowners are saying about HARP.

“Whether you’re looking to refinance a property you live in, or an investment property find out if you qualify for this amazing program.”

– Ruben of Springfield, VA, saved $763 per month. Read the full story »


Harp loan program, harp loan program.#Harp #loan #program


Questions and Answers

Your loan servicer is the financial institution that collects your monthly mortgage payments and has responsibility for the management and accounting of your loan. It is possible that the owner of your mortgage also services it, however many loans are owned by groups of investors and these investors hire loan servicers to interact with homeowners on their behalf. Many lenders also have the loan servicers handle all contact with homeowners.

You may be eligible if:

  1. The mortgage MUST be owned or guaranteed by Fannie Mae or Freddie Mac
  2. The mortgage MUST have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
  3. The mortgage CANNOT have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
  4. The borrower MUST be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.
  5. You have a reasonable ability to pay the new mortgage payments.
  6. The refinance improves the long term affordability or stability of your loan.

Both Fannie Mae and Freddie Mac have established toll-free telephone numbers and web submission processes to make this data available. Homeowners can enter information to determine if either agency owns or guaranteed the loan. This information is not a guarantee of eligibility for a refinance under HARP , as other qualifying criteria must also be met.

For Freddie Mac:

HARP is like any other mortgage where you may be required to pay certain costs for the application, processing, appraisal, title search and other necessary items to complete your refinance.

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There is no longer a maximum LTV limit for borrower eligibility. If the borrower refinances under HARP and their new loan has a fixed rate mortgage, there is no maximum LTV. If the borrower refinances under HARP and their new loan is an adjustable rate mortgage, their LTV may not be over 105%.

It’s as simple as clicking HERE. A HARP specialist will analyze the data as well as direct or guide you to all the benefits HARP has to offer. www.harpprogram.org has moments of higher than average volume. Please be patient and you will be helped as soon as possible. It will also speed up the process if you have the necessary documents ready for the HARP specialist. Generally, you will need the following:

  1. Your most recent income tax return
  2. Information about any junior lien mortgage on the house
  3. Account balances and minimum monthly payments due on all of your credit cards
  4. Account balances and monthly payments on all your other debts

No. The Home Affordable Refinance will not return cash to the borrower for the purpose of paying other debts.

The rate will be based on market rates in effect at the time of the refinance and the homeowner will be subject to any associated points and fees quoted by your lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans must have no prepayment penalties or balloon payments.

Yes, there is no longer a maximum LTV limit for borrower eligibility. Homeowners with more than one mortgage may be eligible for a refinance under HARP . Your eligibility will depend, in part, on two additional requirements:

  1. The lender that has your junior lien mortgage must agree to remain in a junior lien position.
  2. You must be able to demonstrate your ability to meet the new payment terms on the first lien mortgage.

No. Homeowners who are currently delinquent or have been more than 30 days overdue during the past 12 months generally will not qualify. Contact your servicer to see if a modification under the Home Affordable Modification Program is an option for you.

Borrowers who owe more on their mortgages than their homes are worth may be locked into their homes for years and have fewer financial options until they pay down the loan balance. A shorter term mortgage enables such borrowers to pay down the amount they owe much faster than a traditional 30-year mortgage. Furthermore, interest rates on shorter term mortgages usually are less than on thirty-year mortgages. The lower interest rate may provide borrowers the opportunity to shorten the term of their mortgages without much change in their monthly payments, and perhaps even a reduction in that payment. Such an outcome may strengthen the borrower’s financial condition and lower the credit risk for the servicer/lender that owns or guarantees the loan. A few examples illustrate how this works:

  1. Assume a homeowner currently has a mortgage on which he or she owes $200,000 and has an interest rate of 6.5 percent – a monthly payment of $1264. If the house is worth $160,000, the homeowner has a current loan-to-value (LTV) ratio of 125 percent.
  2. If this borrower refinanced into a 30-year fixed-rate mortgage with an interest rate of 4.5 percent, the monthly payment would decline to $1013. But, by refinancing into a 30-year loan, the borrower’s loan balance will not reach $160,000 for ten full years.
  3. If the borrower chose a 20-year loan term at a rate of 4.25 percent (mortgage rates tend to be less for shorter term mortgages), the monthly payment would be $1238 ($26 less than the borrower currently pays) and the borrower’s loan balance would reach $160,000 in five-and-one-half years.
  4. If this same borrower refinanced into a 15 year mortgage, assuming an interest rate of 3.75 percent, the monthly payment would be $1454 ($190 more than the current payment), but the loan balance would be below $160,000 in a bit more than three-and-one-half years.

Timing will vary by mortgage lender. Fannie Mae/Freddie Mac will be sending operational instructions to lenders by November 15th, 2011. Some lenders may be able to accommodate mortgage applications under some of the enhancements by December 1 while it could take other lenders additional time to incorporate the expanded program into their systems. In addition, some of the enhancements such as delivery of loans with LTV greater than 125 should be operational during the first quarter of 2012

We are further streamlining Fannie Mae/Freddie Mac’s existing use of AVM (automated valuation model) estimates of properties. Where there is a reliable AVM estimate of value provided by Fannie Mae/Freddie Mac, a new appraisal will not be needed. Where there is not a reliable AVM value, a new appraisal will be required.

Condominiums are already eligible under HARP and, under the enhanced program, condominiums that originally met Fannie Mae/Freddie Mac requirements remain eligible.

The program expires on December 31, 2016. Your refinance under HARP must have a mortgage note date on or before that date.

If your existing loan has private mortgage insurance, you will need the same amount of insurance coverage for a refinance under HARP . If your existing loan does not have private mortgage insurance, it will not be required as part of a refinance under HARP .

When you submit a loan application, your lender will give you a “Good Faith Estimate” and a “Truth in Lending Statement” that includes your new interest rate, mortgage payment, and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.

No. The objective of a refinance under HARP is to help homeowners get into more stable or more affordable loans. Refinancing will not reduce the principal amount you owe to the first lien mortgage holder or any other debt you owe.

The objective of a refinance under HARP is to provide creditworthy homeowners who have shown a commitment to paying their mortgage the opportunity to get into a new mortgage with better terms.

Keep in mind that all servicers for loans owned or guaranteed by Fannie Mae and Freddie Mac are required to participate with respect to those loans but you are not obligated to your current servicer/lender. You can choose another servicer/lender.

Eligible homeowners who are current on their mortgages but have been unable to take advantage of today’s lower interest rates because their homes have decreased in value, may now have the opportunity to refinance. Through a refinance under HARP , Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they own or that they guaranteed in mortgage backed securities.

All servicers for loans owned or guaranteed by Fannie Mae and Freddie Mac are required to participate. Additional servicers are strongly encouraged to participate.


Home Affordable Refinance Program (HARP): Fannie Mae, harp loan program.#Harp #loan #program


Home Affordable Refinance Program (HARP)

– Ruben of Springfield, VA, saved $763 per month. Read the Full Story »

HARP is unique—it’s the only refinance program that enables eligible borrowers with little to no equity in their homes to take advantage of low interest rates and other refinancing benefits. There have been several changes to HARP, but the primary enhancement removed the limit on the amount that homeowners could be “underwater” (owe more on their mortgage than their home is worth). With that change, many homeowners who were not eligible will now qualify. Program ends December 31, 2018.

HARP may be an option if:

  • You have had a good payment history for the past 12 months. That means having no late payments in the last 6 months and no more than one 30-day late payment from 6 to 12 months ago.
  • Your home is your primary residence, 2nd home or investment property.
  • Your home value has decreased.
  • You have limited equity or your first mortgage exceeds the current market value of the home (i.e., your loan-to-value ratio must be 80% to be eligible).
  • Your loan is owned or guaranteed by Fannie Mae or Freddie Mac. Check the Fannie Mae Loan Lookup tool.
  • Your loan was closed on or before May 31, 2009 (this date can be found using the loan lookup results).

Take the HARP Quiz to see if you may qualify. For more information about HARP eligibility and requirements, go to HARP.gov or visit the Fannie Mae Loan Lookup tool.

Top reasons to refinance with HARP

  • Lower your monthly payment
  • Reduce your interest rate
  • Get a fixed-rate mortgage that won’t change over time
  • Build equity faster—shorter term options may be available
  • Save time and money with usually no appraisal required

Next steps

If you qualify to refinance your mortgage through HARP, you’ll go through an application, approval and closing process (similar to when you got your original mortgage). A HARP lender will work with you through every step, and will help determine if HARP meets your specific needs.

Harp loan program

Gather your financial information—Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:

  • your mortgage statements, including information on a second mortgage (if applicable);
  • your other monthly debt payments (e.g., car or student loans, credit card payments); and
  • your income details (paystubs and income tax returns).

Harp loan program

Contact Your Mortgage Company and ask if they are an approved HARP lender. Or, contact a HARP lender—tell them you are interested in refinancing and you want to see if you qualify for HARP.

It’s important to act quickly. As soon as you think you may have trouble making your mortgage payments or you think you want to refinance, contact your mortgage company to see if you are eligible for this option. If you need further assistance (before or after contacting your mortgage company), contact a Housing Counselor. Homeowners with a Fannie Mae-owned loan should contact one of our Fannie Mae Mortgage Help Network partners. English and Spanish advisors are available, and all services offered by the Fannie Mae Mortgage Help Network are FREE.

Frequently asked questions about the Home Affordable Refinance Program (HARP)

HARP is the Refinancing Solution You Need

HARP has been expanded to help more homeowners qualify for refinancing their mortgage—even those with little or no equity. With HARP you may take advantage of low interest rates and other refinancing benefits even if the value of your home has declined and you owe more than your home is worth. The questions and answers below will help you better understand how this program works.

1. What is HARP?

HARP stands for the Home Affordable Refinance Program. It was introduced by the Federal Housing Finance Agency (FHFA) and the Department of the Treasury in early 2009 as part of the federal government’s Making Home Affordable™ program. HARP provides eligible homeowners, who may not otherwise qualify for refinancing because of declining home values, the ability to refinance their mortgage into a lower interest rate and/or more stable mortgage product. The program was enhanced in 2011 to allow more eligible homeowners to refinance.

Making Home Affordable is a trademark of the United States Department of the Treasury.

2. What does it mean to “refinance” my mortgage?

When you refinance your mortgage, you are applying for a new mortgage, which replaces your current home loan.

3. What enhancements were made to HARP that may make me eligible now?

There were several changes to HARP, but the primary enhancement removed the limit on the amount that homeowners could be “underwater” (owe more on their mortgage than their home is worth). With that change, many homeowners who were not eligible will now qualify.

4. What if I have an adjustable-rate mortgage (ARM)?

HARP allows you to replace your adjustable-rate mortgage to a more stable fixed-rate mortgage. Refinancing may provide you with a lower monthly payment and allow you to avoid the sometimes large payment increase that comes once your ARM’s initial rate ends as the rate may increase over time. The stability of a fixed monthly payment will give you security in knowing what your principal and interest payment will be every month.

5. Is HARP the only refinance program available?

HARP is one of several refinancing options available to eligible homeowners. But HARP is unique—it’s the only refinance program that enables eligible borrowers with little to no equity in their homes to take advantage of low interest rates and other refinancing benefits.

6. How can I find out whether my loan is owned by Fannie Mae or Freddie Mac?

Only mortgages owned or guaranteed by either Fannie Mae or Freddie Mac are eligible for refinance under HARP. You can confirm that your mortgage is owned by either Fannie Mae or Freddie Mac by checking the following Web sites:

7. How does the HARP refinance process work?

If you qualify to refinance your mortgage through HARP, you’ll go through an application, approval and closing process (similar to when you got your original mortgage). A HARP Lender will work with you through every step, and will help determine if HARP meets your specific needs. Contact Your Mortgage Company and ask if they are an approved HARP lender. Or, contact a HARP lender—tell them you are interested in Refinancing and you want to see if you qualify for HARP.

8. What if I have been turned down for refinancing before?

The guidelines for HARP may have changed since you last applied, so you may qualify.

9. Will I have to pay closing costs?

Maybe, but closing costs vary by state and size of your loan. Closing costs might be rolled into your new loan so you wouldn’t have to pay these costs out of pocket at closing. Check with a HARP lender to learn more.

10. Is it worth refinancing with HARP?

On average, homeowners are saving over $250* per month on their mortgage payments.

*Average actual monthly payment savings based on total 2012 Fannie Mae HARP mortgage volume. Your monthly savings may vary based on the specific terms of the loan selected, the interest rate, APR and other factors. All loans are subject to credit approval. Contact a HARP lender for details.

11. What if my income is low? Or my income has decreased?

In most cases, it doesn’t matter. You still may qualify.

12. Do I need a new appraisal?

In most cases, no. With HARP, an appraisal is not generally required, so you save time and money.

13. If I owe more on my home than it’s worth, will I have to make a down payment before I can refinance?

No. You do not need to pay more money down on your mortgage in order to refinance with HARP.

14. Do I have to refinance for another 30 years?

No. Shorter loan terms (15-years and 20-years) may be available so you can start paying down your mortgage quicker and building equity faster.

If the new loan is secured by your primary residence and the unpaid principal balance exceeds the property’s fair market value, the interest on the portion of the unpaid principal balance that is greater than the fair market value of your primary residence is not deductible for federal income tax purposes. You should consult a tax advisor for further information regarding the deductibility of interest and charges.

Fannie Mae and Freddie Mac have adopted changes to the Home Affordable Refinance Program (HARP) and you may be eligible to take advantage of these changes. If your mortgage is owned or guaranteed by either Fannie Mae or Freddie Mac, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP. You can determine whether your mortgage is owned by either Fannie Mae or Freddie Mac by checking the following Web sites: knowyouroptions.com/loanlookup or freddiemac.com/mymortgage.

What homeowners are saying about HARP.

“Whether you’re looking to refinance a property you live in, or an investment property find out if you qualify for this amazing program.”

– Ruben of Springfield, VA, saved $763 per month. Read the full story »


Home Affordable Refinance Program (HARP): Fannie Mae #monthly #mortgage #calculator


#harp loan program
#

Home Affordable Refinance Program (HARP)

The government’s Home Affordable Refinance Program (HARP) has been expanded to help more homeowners qualify for refinancing their mortgage. Even those with little or no equity available may take advantage of low interest rates, and other refinancing benefits.

“Whether you’re looking to refinance a property you live in, or an investment property, find out if you qualify for this amazing program.”

What is HARP?

HARP is unique—it’s the only refinance program that enables eligible borrowers with little to no equity in their homes to take advantage of low interest rates and other refinancing benefits. There have been several changes to HARP, but the primary enhancement removed the limit on the amount that homeowners could be “underwater” (owe more on their mortgage than their home is worth). With that change, many homeowners who were not eligible will now qualify. Program ends December 31, 2016.

HARP may be an option if:

  • You have had a good payment history for the past 12 months. That means having no late payments in the last 6 months and no more than one 30-day late payment from 6 to 12 months ago.
  • Your home is your primary residence, 2nd home or investment property.
  • Your home value has decreased.
  • You have limited equity or your first mortgage exceeds the current market value of the home (i.e. your loan-to-value ratio must be 80% to be eligible).
  • Your loan is owned or guaranteed by Fannie Mae or Freddie Mac. Check the Fannie Mae Loan Lookup tool.
  • Your loan was closed on or before May 31, 2009 (this date can be found using the loan lookup results).

Take the HARP Quiz to see if you may qualify. For more information about HARP eligibility and requirements, go to HARP.gov or visit the Fannie Mae Loan Lookup tool.

Top reasons to refinance with HARP

  • Lower your monthly payment
  • Reduce your interest rate
  • Get a fixed-rate mortgage that won’t change over time
  • Build equity faster—shorter term options may be available
  • Save time and money with usually no appraisal required

Next steps

Gather your financial information —Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:

  • your mortgage statements, including information on a second mortgage (if applicable);
  • your other monthly debt payments (e.g. car or student loans, credit card payments); and
  • your income details (paystubs and income tax returns).

It’s important to act quickly. As soon as you think you may have trouble making your mortgage payments or you think you want to refinance, contact your mortgage company to see if you are eligible for this option. If you need further assistance (before or after contacting your mortgage company), contact a Housing Counselor. Homeowners with a Fannie Mae-owned loan should contact one of our Fannie Mae Mortgage Help Network partners. English and Spanish advisors are available, and all services offered by the Fannie Mae Mortgage Help Network are FREE.

Frequently asked questions about the Home Affordable Refinance Program (HARP)

HARP is the Refinancing Solution You Need

1. What is HARP?

HARP stands for the Home Affordable Refinance Program. It was introduced by the Federal Housing Finance Agency (FHFA) and the Department of the Treasury in early 2009 as part of the federal government’s Making Home Affordable™ program. HARP provides eligible homeowners, who may not otherwise qualify for refinancing because of declining home values, the ability to refinance their mortgage into a lower interest rate and/or more stable mortgage product. The program was enhanced in 2011 to allow more eligible homeowners to refinance.

2. What does it mean to “refinance” my mortgage?

3. What enhancements were made to HARP that may make me eligible now?

4. What if I have an adjustable-rate mortgage (ARM)?

5. Is HARP the only refinance program available?

6. How can I find out whether my loan is owned by Fannie Mae or Freddie Mac?

7. How does the HARP refinance process work?


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Home Affordable Refinance Program (HARP)

Refinance Your Home Under the HARP Program

If you want to refinance, but may not qualify for a traditional refinancing loan due to the current value of your home, then the Home Affordable Refinance Program, or HARP, could be an appropriate option for you.

The HARP program is a federally funded program designed to help homeowners in need. With the extension of the program through the end of 2015, eligible homeowners now have additional time to apply for a refinance.

Benefits of the HARP Refinance Program

Refinancing your mortgage through the HARP program can provide positive benefits that may help you stabilize your financial situation. The benefits can include:

  • Changing your adjustable-rate mortgage to a fixed-rate mortgage
  • Reducing your interest rate
  • Reducing the amount of time you are paying on your home
  • Paying less on a monthly basis

The exact benefits will depend on your finances and goals, but a HARP refinance may change your current mortgage to something that is more appropriate for your needs.

HARP Eligibility Guidelines

The Home Affordable Refinance Program has eligibility guidelines that determine whether you qualify for a refinance loan.

  • You must be current on your existing mortgage payments and have a good payment history over the last 12 months, with no late payments in the last 6 months
  • Your current mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac
  • The HARP refinance must provide clear benefit to you as the borrower – for example, by obtaining a lower interest rate, locking in a fixed-rate loan or reducing the term of the loan
  • You must have enough income to cover the monthly payments

Your new loan amount must be at least 81 percent of the current value of your home

How to Apply for a HARP Mortgage Loan

When you are ready to apply for a HARP mortgage, getting documentation together before starting the application process will save time. The appropriate documentation will include:

  • Your pay stubs for the last three to six months
  • Your tax returns for the last two to three years
  • Your most recent bank statement
  • A hardship letteR written by you that explains your current financial situation

You can also provide details about your current mortgage, the value of your home and any other debts that you currently owe. All of these considerations work to determine your eligibility for a HARP mortgage loan.

Interested in learning more? A U.S. Bank mortgage loan originator can answer your questions about the Home Affordable Refinance Program and determine whether you re eligible to apply.


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Now May Be The Time For A More Affordable Mortgage Loan

What is HARP?

In April of 2009, the Home Affordable Refinance Program (HARP) was launched by the federal government with the purpose of assisting low-equity homeowners to take advantage of more favorable mortgage rates.

HARP Eligibility*

The redesigned HARP guidelines are as follows:

  • There is no maximum loan-to-value (LTV). You may qualify even if you owe more than the value of your home.
  • Applicant must be current on existing mortgage at the time of refinance with good payment history in the last 12 months.
  • Available for primary residence, second homes and investment properties.
  • No minimum credit score requirements.
  • Mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. Note: your loan may have been sold even if your servicer has remained the same.
  • Program available through December 31, 2015.

Ready to apply and find out if you qualify?

Don’t qualify for HARP?

Beneficial Bank may still be able to help you refinance your mortgage. Click here for more information about Beneficial mortgages.

*Other requirements will apply. Some may not qualify if you owe more than the value of your home. Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance Program (HARP) and you may be eligible to take advantage of these changes. If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites: www.freddiemac.com/mymortgage or http://www.fanniemae.com/loanlookup/. For additional details on the HARP program, you can visit the government website.

**Please note: The use of non-secure e-mail is intended for general questions, inquiries and comments only. Confidential Customer information cannot be accepted electronically.


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Are You Eligible?

Could you get “HARPed?”

See if you meet these basic eligibility 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. You can use the Loan Look-up Tools below if you are unsure.
  • Your loan was originated on or before May 31, 2009. By using the loan look-up tools below, this date will be made available to you.
  • Your current loan-to-value (LTV) ratio must be greater than 80%. Calculate your LTV ratio with this tool .

Is your mortgage owned by Fannie Mae or Freddie Mac?

Use their online tools to quickly find out, or call them toll-free:

Call: 800-7FANNIE (8 am to 8 pm ET)

Freddie Mac

Call: 800-FREDDIE (8 am to 8 pm ET)

Note: Be sure and check your address on both the Fannie Mae and Freddie Mac look-up tool. If your address does not appear in the look-up tool of either site, your loan is not owned by Fannie Mae or Freddie Mac and you are not eligible for the program.

Turned down before? Now’s the time to try again.

Could you get “HARPed?”


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Click To See Today’s Rates

Posted October 20, 2015

As Seen On

Harp Refinance Program Making Home Affordable

Editor’s Note: This information is accurate and current as of today, November 18, 2015. This HARP loan post reflects the current standards for HARP 2.0, and contains information about HARP 3.

What Is The HARP Loan?

The Home Affordable Refinance Program (HARP) is a U.S. government-backed mortgage program for homeowners whose homes have lost value since purchase. The HARP program was first launched in early-2009 as part of the Making Home Affordable initiative.

Since its inception, HARP has helped more than 3.3 million U.S. homeowners refinance to today’s low mortgage rates.

The government revamped HARP in 2011 to help reach an even broader set of U.S. homeowners. Dubbed “HARP 2.0”, the program’s new guidelines made qualifying for the program more simple and, for many, waived the need for a home appraisal as part of a refinance.

The eligibility requirements of the Home Affordable Refinance Program (HARP) are relaxed as compared to a traditional refinance.

Homeowners using the HARP program must have a mortgage currently backed by Fannie Mae or Freddie Mac, and that mortgage must have started no later than May 31, 2009.

The majority of U.S. mortgages are backed by Fannie Mae or Freddie Mac.

Note that your loan may have been securitized by Fannie Mae or Freddie Mac even though you send your mortgage payments to a specific mortgage lender. Homeowners whose mortgages pre-date May 31, 2009 are likely to be HARP-eligible.

The Home Affordable Refinance Program is available in all 50 states, and in the District of Columbia. Closing times are quick and mortgage rates are low.

The government will not accept new HARP applications after December 31, 2016.

HARP Becomes HARP 2.0 (And Maybe HARP 3)

The Home Affordable Refinance Program launched in March 2009 as part of the government’s broader Making Home Affordable program. Home values had been falling at the time and so were current mortgage rates .

Additionally, the economy was entering recession.

The government devised HARP as a way to help U.S. homeowners and the U.S. economy.

By helping homeowners to get access to lower mortgage rates, the “Obama Refi” meant to save homeowners $3,000 annually; money which could be then spent on goods and services to propel the economy ahead.

As mortgage rates fell, though, those estimates were proved low.

For many households, annual savings were greater than three thousand dollars per year. That is, for household which were actually HARP-eligible.

HARP had been touted as a program which could help up to 7 million U.S. households. However, after the program’s first three years, HARP had failed to reach even one  million people.

This is when the government embarked on a major HARP overhaul and, in late-2011, HARP 2.0 was re-released  with two major changes.

HARP’s first major change was to allow loans with unlimited loan-to-value (LTV) .

Prior to HARP 2, refinance loans had been limited to 125% loan-to-value. After its release, homeowners in hard-hit states such as California, Florida, and Arizona were able to get access to the Home Affordable Refinance Program.

HARP 2 also expanded the number of lenders with which a homeowner could refinance, making it easier for homeowners to comparison shop for low, competitive rates.

HARP 2 was a hit.

Within 12 months, a second million loans had closed and, because mortgage rates were dropping to multi-year lows, the typical HARP household was now saving upwards of 30% annually.

Today, HARP closings are slowing.

2015’s second quarter saw the fewest closed HARP loans since the program first launched which may suggest that the program is reaching its useful end.

However, earlier this year, the government extended the Home Affordable Refinance Program’s expiration date by one year which, some believe, may be a precursor to a third iteration of the HARP refinance program.

HARP 3 could help homeowners whose loans are outside the program’s current scope.

Potential HARP 3 changes could include a waiver for non-Fannie Mae and non-Freddie Mac mortgage; a change in the program start date to 2010 or 2011; and an allowance to “re-HARP” an existing HARP loan.

There’s no timetable for a passage of HARP 3. It may never come to pass at all.

HARP Loan Eligibility Requirements

For homeowners meeting HARP loan program’s eligibility requirements, getting approved for a HARP loan is relatively straight-forward.

Paperwork requirements are often less than with a traditional mortgage refinance and, in many cases, home appraisals are not required.

To qualify for HARP, homeowners must be able to answer “yes” to the following three questions :

  1. Does your home have less than 20% equity?
  2. Have you paid your mortgage on-time for the last 6 months?
  3. Did your loan start on, or before, May 31, 2009?

The fourth requirement is that your current mortgage must be secured by Fannie Mae or Freddie Mac, which many loans are.

Because there is no loan-to-value restriction on a HARP loan, home appraisals are rarely required with HARP but there are other program notes worth knowing, too.

As one example, you can use HARP to refinance a mortgage when your home has a second mortgage, too. However, HARP will not allow you to combine the two mortgages on your approval; or, take cash-out at the time of closing.

HARP is for first mortgages only.

Another program note is that HARP can be used on loans with existing private mortgage insurance (PMI).

HARP allows for all types of private mortgage insurance including borrower-paid mortgage insurance (BPMI), lender-paid mortgage insurance (LPMI), and single-premium mortgage insurance.

Your mortgage insurance coverage will neither increase nor decrease via the Home Affordable Refinance Program.

Lastly, don’t be discouraged if your first HARP loan application gets declined. It makes sense to apply again. This is because U.S. lenders rarely offer HARP to consumers in the exact way the program’s provided.

Many enforce additional qualification standards on HARP mortgage applicants, a underwriting process known as an “investor overlay “.

Some lenders will enforce a minimum FICO score for applicants; others may require additional income verifications. Therefore, if at first your loan is declined, it can be wise to apply again.

Homeowners wishing to use the HARP loan program should plan to act quickly, though. The program will cease to be available after December 31, 2016 .

What Are Today’s Mortgage Rates?

For U.S. homeowners whose homes have lost value since purchase, the government’s Home Affordable Refinance Program is an excellent way to capitalize on low mortgage rates today. The typical HARP homeowner saves much more than $3,000 annually.

Get today’s live mortgage rates now. Rates are available with no social security number required to get started and all quotes come with instant access to your “mortgage credit scores”.

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.


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HARP Loan

If the value of your home has dropped since you bought it, the government’s

Home Affordable Refinance program may help.

What is HARP/HARP 2.0?

HARP stands for the Home Affordable Refinance Program, which the government launched in 2009 to help underwater homeowners who are current on their Freddie Mac- or Fannie Mae-owned mortgages to refinance.

HARP allows high-LTV homeowners to refinance at the low rates lenders offer now. In 2012, the HARP program even underwent a revision, allowing even more borrowers take advantage of the program. This updated program is referred to as HARP 2.0.

Some background

When the housing bubble burst in late 2006, average home prices fell. This left millions of homeowners owing more on their mortgages than their homes were worth. Even worse, they were generally unable to refinance because of their high loan-to-value (LTV) ratios, even as mortgage rates fell to record lows.

Eligibility requirements

Because the government created this program with certain circumstances in mind, HARP refinances aren’t available to everyone. Requirements dictate that:

  • You must be current on your mortgage.
  • You must not have made more than one late payment over the past twelve months.
  • Your loan must be currently held by Fannie Mae or Freddie Mac.
  • Your loan must have been issued prior to May 31st, 2009.

Other eligibility and underwriting guidelines will apply, depending on your individual financial situation.

Why pick Total Mortgage?

After 17 years of success, it’s safe to say that we know what we’re doing. Plus:

  • We have some of the lowest interest rates in the country.
  • No pre-payment penalties, ever. Pay off all your debt as fast as you can. We promise not to get grumpy about it.
  • No pushy loan officers, just experienced professionals who will educate you as they help you get the financing that makes sense for you.

Think you’re ready to refinance with HARP? Give us a call or fill out the form on the right to find out more.

If your home has lost value, we’re here to help. Get started now by filling out our form or calling 203-707-5693

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