Facts about HARP program

[Garrett Philips]

If you're not behind in your mortgage repayments but have been unable to get standard refinancing because the benefit of your house has decreased, you could be eligible to refinance through the Home Affordable Refinance Program (HARP). HARP is designed to help you to get a fresh, more cost-effective, more secure mortgage. HARP refinance loans require underwriting procedure and a loan application, and refinance fees will employ. Millions of homeowners found themselves in-a tough situation following the U.S. Property bubble burst in 2006. House costs fell, as inventories jumped nationwide. Many fresh homeowners saw the worth of these domiciles drop below the balance of the mortgages, or very nearly so. Later, these same homeowners were prevented from taking advantage of lower-interest rates through refinancing, since banks usually demand a loan-to-value ratio (LTV) of 80% or less to be eligible for a refinancing without private mortgage-insurance.

Simply take for example a residence that was bought for $160,000 but has become worth $100,000 due to the industry fall. Further, suppose on the mortgage the homeowner owes $120,000. In this predicament, the ratio would be 120%, and in the event the homeowner made a decision to refinance, he would also need to buy private mortgage insurance. The added expense could nullify much of the main benefit of refinancing, so the homeowner could be effectively restricted from refinancing, In the event the homeowner was not currently investing in PMI.

You may be qualified to receive HARP if you meet most of the following criteria:

The mortgage has to be owned or guaranteed in full by Freddie Mac or Fannie Mae.





The present loan-to-value (LTV) ratio must certanly be more than 80-foot.

The consumer must certanly be existing on the mortgage at the time of the refinance, with a good payment history in the past 12-months. For more infos visit see it here.