Many homeowners would like to refinance their homes to get a more affordable mortgage, but they owe as much or more than their home is worth. If you're in that situation, you need to check out HARP® refinancing.
The Home Affordable Refinance Program - HARP
The Federal Housing Finance Agency introduced the HARP program in 2009. It allows many homeowners to refinance their home in order to accomplish one or more of the following:
- Lower your monthly payment
- Reduce your interest rate
- Acquire a fixed-rate mortgage
- Build equity faster by reducing the term of the loan
- Refinance with lower closing costs
- The HARP refinance program has undergone several revisions since 2009. Currently, the HARP program offers you:
- No limits if you owe more than your home is worth.
- No home appraisals or loan underwriting to make the refinance faster and less expensive.
- Less paperwork required for income verification.
- An extended program deadline of September 30, 2017.
Many More Homeowners Are Now Eligible
If you tried to refinance using HARP in the past and failed, now's the time to try again. Several changes in the way the program operates have made many more homeowners eligible. These are the basic HARP qualification requirements:
- You're current on your mortgage and have no late payments in the last six months, and no more than one late payment in the past 12 months.
- Your loan is owned by Freddie Mac or Fannie Mae.
- Your loan was originated on or before May 31, 2009.
- Your current loan-to-value (LTV) ratio is greater than 80 percent.
- Your home is either your primary residence, a one-unit second home or a one- to four-unit investment property.
The limits on owing more than your home is worth have been eliminated. Therefore, any LTV over 80 percent is eligible. This is great news for homeowners who are "underwater," meaning that you owe more than your home is worth. For example, if your home is worth $200,000, but you owe $250,000, your LTV is 125 percent. That won't prevent you from using HARP if you meet the other qualifications.
Southpoint Financial Can Help You Take Action Now
Since there is a deadline for refinancing using HARP, now is the time to make a decision to refinance. Submit your application to pre-qualify for refinancing today!
Southpoint Financial is committed to processing your loan quickly and accurately. Get pre-qualified, or call us at (800) 573-6247 to talk to a lender who has your best interests in mind, and who will guide you through every step of the process.