Monday, January 19, 2015

Mortgages and HARP

Have you heard of HARP? If you haven’t, you’re not alone. Though the program was started back in 2009, it hasn’t really gotten the popularity it deserves, in large part because a lot of home lenders don’t go around advertising it.

The program’s name is actually the Home Affordable Refinance Program, and it’s a great way for homeowners to easily refinance their mortgages, thus saving them money in the long run. The new mortgage terms that can be negotiated under the act are typically more stable, in addition to being cheaper than average mortgage terms, and the few homeowners who have taken advantage of this bailout have saved as much as $3000 each year.    


This brand new year- 2015- is the last year to take advantage of the program. However, it’s definitely not too late to enjoy an awesome new mortgage rate! Just some of the benefits homeowners can qualify for include:

l  Eliminate up to 15 years of payments
l  Refinancing
l  Reduced payments

Taking advantage of HARP is 100% free, but homeowners do have to qualify for the program. The basic eligibility requirements are:

l  Current on mortgage payments
l  The home is a primary residence, a second home, or an investment property
l  The home loan is through Freddie Mac or Fannie Mae
l  The loan was started before May 31, 2009
l  The current Loan to Value ratio is more than 80%

Individuals who meet these eligibility requirements are encouraged to contact their financial advisors to talk about how this option could possibly benefit them. If they are given the “go-ahead” from their advisors, the next step is for a homeowner to contact his or her mortgage company, if the mortgage company is a HARP approved lender. If not, a HARP lender should be found and contacted to get the process started. Taking advantage of this government program is a smart choice for many people and is definitely worth looking into for homeowners who want to refinance their mortgages.


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