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The new HARP Program was outlined in the President's State of the Union address. This program is to help responsible borrowers refinance their homes at today's low rates - even if they are underwater with the loan to home value. The plan is to provide borrowers who are current on their payments the opportunity refinance making a big difference in the money they will save each month.

The Big Day is March 1st - that's when most lenders will have the program up and running..

Here are some key issues regarding the HARP program - sometimes called DU Refi Plus:

• Loan must be closed and funded by December 31, 2013.
• No maximum loan to value limits - some lenders may have their own guidelines.
• No Mortgage delinquencies (lates) on the existing mortgage in the most recent six month period, and no more than one 30-day delinquency in months 7 - 12.
• There may be a requalification requirement if there is a large payment increase. If the principal and interest payment increases by more than 20% of the current obligated payment then: - Minimum credit score of 620
  - Maximum debt to income of 45%
  - Verification of income sources and amounts
  - Verification of assets to close if the borrower is required to bring funds to closing

To be eligible the borrower must receive a benefit in the form of either

• A reduced monthly mortgage payment (principal and interest) or
• A more stable product, such as moving to a fixed-rate mortgage from an ARM or
• A reduction in the interest rate
• A reduction in the loan term (going from a 30 year fixed rate to a 15 year fixed rate)

<p style="text-align: center;"><span style="color: #ff0000;">___________________________</span>

<p style="text-align: center;">I'm Linda Miller, a Smart Loan Lady and Your Preferred Utah Mortgage Advisor

<p style="text-align: center;">Call me at 801.550.1222

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