The HARP Program: Basics and Benefits
Are you paying more than the prevailing rate for your mortgage? Do you owe more than your home is worth, and have you been told that you cannot convert your ARM to a fixed rate loan, or that refinancing is not an option? If the answer to any of these questions is "yes", then the Home Affordable Refinance Program (HARP) may be the solution. HARP offers refinancing help to struggling homeowners like you. In this article, we will discuss HARP and its benefits.
The Advantages of HARP
The average homeowner could reduce their yearly mortgage expenses by up to $2500 per year, according to experts. Your savings could be even more substantial, but as with any home loan refinancing option, HARP comes with harp loan fees. However, the fees are usually lower than those of a typical refi through a mortgage broker; you won't have to pay an appraisal fee if the best mortgage companies can have the process automated.
Qualifications for a HARP Loan
To get a loan through the HARP program, Fannie Mae or Freddie Mac must back your mortgage, and it must have been sold to either of those two entities before June of 2009. You can only get one loan through HARP, so if you've gotten one before, the only way you can get another is if your original loan was refinanced between March-May of 2009. You must owe at least 80% of your home's value, and if you've been late with a payment within the last six months, you are ineligible. Those meeting the above criteria have until the end of December 2015 to apply.
Applying for HARP
This program is beneficial if you are "upside down" on your mortgage and cannot refinance. You'll pay the market rate, instead of the discounted amount. If you're refinancing into a fixed rate mortgage, your new rate should be at least .5% better than the old one. When applying, you'll need the following documents:
Paycheck stubs
Mortgage statements
Tax returns for the past few years
Bank statements
Debt tallies
HELOC and second mortgage paperwork
The HARP program is very beneficial under the right circumstances, and there are certain things you can do to make the process go more smoothly. Ask the mortgage lenders which documents they'll need, and allow yourself plenty of time to gather everything. Submit all your paperwork through certified mail, to ensure that it's received in a timely fashion.
Are you paying more than the prevailing rate for your mortgage? Do you owe more than your home is worth, and have you been told that you cannot convert your ARM to a fixed rate loan, or that refinancing is not an option? If the answer to any of these questions is "yes", then the Home Affordable Refinance Program (HARP) may be the solution. HARP offers refinancing help to struggling homeowners like you. In this article, we will discuss HARP and its benefits.
The Advantages of HARP
The average homeowner could reduce their yearly mortgage expenses by up to $2500 per year, according to experts. Your savings could be even more substantial, but as with any home loan refinancing option, HARP comes with harp loan fees. However, the fees are usually lower than those of a typical refi through a mortgage broker; you won't have to pay an appraisal fee if the best mortgage companies can have the process automated.
To get a loan through the HARP program, Fannie Mae or Freddie Mac must back your mortgage, and it must have been sold to either of those two entities before June of 2009. You can only get one loan through HARP, so if you've gotten one before, the only way you can get another is if your original loan was refinanced between March-May of 2009. You must owe at least 80% of your home's value, and if you've been late with a payment within the last six months, you are ineligible. Those meeting the above criteria have until the end of December 2015 to apply.
Applying for HARP
This program is beneficial if you are "upside down" on your mortgage and cannot refinance. You'll pay the market rate, instead of the discounted amount. If you're refinancing into a fixed rate mortgage, your new rate should be at least .5% better than the old one. When applying, you'll need the following documents:
Paycheck stubs
Mortgage statements
Tax returns for the past few years
Bank statements
Debt tallies
HELOC and second mortgage paperwork
The HARP program is very beneficial under the right circumstances, and there are certain things you can do to make the process go more smoothly. Ask the mortgage lenders which documents they'll need, and allow yourself plenty of time to gather everything. Submit all your paperwork through certified mail, to ensure that it's received in a timely fashion.
