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Prospect Financial Group, Inc.

HARP Refinance vs. Traditional Refinance

Friday, November 22, 2013 - Article by: Prospect Financial Group, Inc. - Message

If you are planning to refinance your mortgage you will find that there are many different mortgage programs available to you. If you are underwater on your mortgage, you probably won't be able to qualify for a traditional refinance program. Luckily, there is a refinance program available specifically for underwater homeowners known as the Home Affordable Refinance Program (HARP).

The government made the HARP program available for underwater homeowners in order to help homeowners refinance their mortgage, lower their mortgage payment and build equity in their homes. In order to take advantage of the HARP program, you must meet several requirements, including your loan being owned by Fannie Mae or Freddie Mac, your loan was originated prior to May 31st, 2009, you have no late payments in the last six month and you have no more than one late payment in the last year.

A traditional refinance has much stricter qualification requirements compared to HARP refinance. One of the main differences is that you must have equity in your home in order to refinance under a traditional refinance program. Your loan cannot be more than 80 percent of your home's value. You also must meet income, credit score and other requirements.

No matter what type of financial situation you are in, Prospect Financial Group, Inc. can help find a refinance program for you. Give us a call today at 858-605-0952 to explore your refinance options.

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