HARP Can Help You Access Affordable Mortgage Refinancing

Troubled homeowners can take advantage of HARP.  This is a government program that will enable you to get affordable refinancing.  You should apply now because it will end in a couple of months. 

The Home Affordable Refinance Program or HARP will end on June 10, 2010.  This program is part of the government’s initiative called Making Home Affordable.  This is designed to prevent foreclosure by allowing homeowners to get the needed refinancing for their mortgage. With this program, you can refinance your mortgage at up to 125 percent of your home’s current value.  

Obviously, this initiative was created to assist troubled homeowners whose homes have lost value.  The program will give you access to more affordable mortgage refinance loans.  It may seem that June 10 is still a long way off.  However, you have to remember that red tape, negotiations, and growing demand could cause delays in the approval of applications. Because of these, you have to act fast and apply now so you can take advantage of this program. 

Who Will Benefit From HARP

If your home has become ‘underwater’ and you have an adjustable rate mortgage that will reset to a higher rate, then HARP is a potential lifesaver.  This program will also benefit homeowners who have other types of mortgage with monthly payments that are scheduled to increase.  

Usually, the logical thing that you can do is to refinance before the rates increase.  Unfortunately, due to the steep decline in the home values, qualifying for a mortgage refinance offered by private lenders has become very difficult or impossible.  This is where the Home Affordable Refinance Program comes in.  

You can also benefit from HARP even if you are not facing an imminent increase in mortgage interest rates.  But you have to remember that adjustable rate mortgage is designed to reset to a higher rate.  On the other hand, if you took the interest-only payment option, you will eventually be required to begin paying the principal.

If you can not refinance the mortgage, you will be faced with the prospect of increasing interest rates and monthly payments.   If you have become ‘underwater’, the HARP program could be your only practical option of getting an affordable refinancing.  

Some Points to Consider Before You Apply

To qualify for HARP, you can not owe more than 125 percent of your current home value on the primary mortgage.  But you have to take note that you can still qualify even if the second mortgage or home equity loans exceed 125 percent.  However, the holder of the second mortgage and home equity loan must agree to remain in the junior position when you refinance.  

You can also qualify for the program even if you are not having financial difficulties. Some participating lenders will still consider your application.  It is also not necessary to refinance with your current lender.  You can use any participating lender approved by Fannie Mae and Freddie Mac. 

HARP can be a real lifesaver.  But you have to act quickly by applying today.  That is because the program will end in a few months.  

Article Tags: Affordable Mortgage, Home Affordable

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