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Steve Vaserman

Will the Revamped HARP Help Me Refinance?

Wednesday, December 14, 2011 - Article by: Steve Vaserman - Supreme Lending - Message

Approximately 11 million homeowners, many of whom have fallen victim to the easy financing and artificially inflated housing prices, owe more than what their home is worth. Underwater homeowners have been unable to qualify for any refinance relief; but with the recent changes made to the Home Affordable Refinance Program (HARP), those homeowners in deep debt can now lock in a new, more management mortgage rate.

Read on to learn if you qualify for HARP and/or to learn how it can help you take advantage of today's desirable mortgage rates.

What significant changes have been made?

The former HARP, which was introduced in 2009, limited refinance loans to no more than 125 percent of the value of the home. Now, with the revamped HARP in place, underwater homeowners can refinance without restriction. The HARP will not enforce a loan-to-value cap.
If Fannie Mae and Freddie Mac have enough data in their automated valuation system, borrowers will not be obligated to purchase a new property appraisal. This both eliminates any appraisal expense and speeds up the refinancing process.
Mortgage loan risk fees will either be reduced or eliminated for those borrowers who refinance their mortgage into a shorter-term loan such as the 15-year and 20-year mortgage.
In addition to the HARP changes for borrowers, lenders will also experience some welcome modifications.

Under the revamped HARP, lenders would have the opportunity to be released from certain liabilities on the original loans if they refinance those loans through HARP.

Do I qualify for HARP?

Unfortunately only those mortgages sold to Fannie Mae and Freddie Mac on or before May 31, 2009, are eligible for refinance under HARP. Borrowers must also be current on their loans and have no late payments in the last six months.

Work with your Supreme Lending mortgage professional to identify the mortgage or refinance program options that fit your financial situation.

Keeping You Informed

Steve Vaserman


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