Late last year the Federal Housing Finance Agency announced a series of changes to the Home Affordable Refinance Program (HARP). These changes have enhanced the program and opened up refinancing opportunities to more underwater borrowers. The program was renamed HARP 2.0.
What this means is that if you are currently upside down in your mortgage, this could be your opportunity to refinance at today’s historically low rates, even if you owe more than your house is currently worth. It also means that you might be able to reduce your balance by shortening the term of your mortgage.
There are some basic eligibility criteria for the new HARP 2.0 Refinance Program:
2) The mortgage must have been sold to Freddie Mac or Fannie Mae on or before May 31, 2009
3) The mortgage cannot have been previously refinanced under HARP unless it is a Fannie Mae loan that was refinanced under HARP FROM March – May 2009
4) The current loan-to-value (LTV) ratio must be greater than 80 percent
5) 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 that one late payment in the past 12 months.
Please note that some HARP lenders have additional overlays and requirements.
I am available to help you figure out your eligibility and guide you through the HARP 2.0 refinance system. Don’t miss this opportunity to potentially lower your payments and build equity in your home, even if you owe more than the house is worth. The HARP 2.0 program is only available until December 2013. Call me at (707) 763-6290 or visit us online at www.harprefinancetips.com