How Does Harp Loan Work

This opens up the program to an entirely new and much larger pool of borrowers.

How does harp loan work. If you qualify for harp refinancing you may be able to save a significant amount of money by lowering your monthly payment reducing your interest rate switching from an adjustable rate mortgage to a fixed rate mortgage or shortening your mortgage term from 30 years to 15 or 20 years. Mortgage advice how does harp loan work lowest home loan. The loan has no 30 day late payments in the last six months. Harp was aimed at borrowers who had a loan to value ratio ltv of greater than 80.

First unlike its predecessor harp 2 0 allows borrowers with mortgage insurance to qualify for a refi. How does harp work. How does the harp program work. How does harp 2 0 work.

Typically these borrowers have trouble securing refinancing because of lack of equity in their homes thus. So under harp 2 0 it was possible to qualify for a refinance loan with a ltv ratio above 125. Not have been previously refinanced under harp unless it is a fannie mae loan that was refinanced under harp between march and may of 2009. Harp 2 0 closed as many loans in its first 12 months as the original harp 1 0 closed in its first three years.

Unlike harp 1 0 the updated version of the program had no ltv ceiling for individuals with fixed rate mortgages. Through new programs homeowners can get a lower interest rate which means less out of pocket costs each month get a shorter loan term or change from an adjustable to fixed rate mortgage. Today however harp volume has slowed. The property hasn t already been refinanced using harp you can t refinance the same property twice through harp.

How does harp work. New programs are essentially an extension of harp but with different names and slightly different requirements. The harp program only works if your loan is owned by fannie mae or freddie mac and was acquired by them prior to june 1 2009. The loan does not have more than one late payment of 30 days or more in past 12 months.

The home affordable refinance program harp is a federal program of the united states set up by the federal housing finance agency in march 2009 to help underwater and near underwater homeowners refinance their mortgages unlike the home affordable modification program hamp which assists homeowners who are in danger of foreclosure this program benefits homeowners whose mortgage payments.