The HARP 2.0 mortgage program was designed to help underwater homeowners take advantage of historically low interest rates and reward borrowers who stay current with mortgage payments. What does it mean to be underwater on your mortgage? It means the value of the house is less than the secured loan on the property. Since real estate is local, not national, certain markets have been more affected than others with lower home values than their original purchase price. Over time we know that real estate is one of the most consistent long term investments, but in the short term homeowners may find themselves temporarily upside down. Here are a few points that may put your mind at ease if you find yourself in this situation. Just because your home may be valued at less than the price you paid, doesn’t mean you’ve lost any money. You only lose money if you sell the house at a price lower than the price you paid. Until then it is a fluctuation on paper and you are still taking advantage of living in the property. This does affect your ability to borrow against the asset in the short term, but with programs like HARP 2.0 you can still take advantage of historically low interest rates, maintain residence in the property, and lower your monthly payments as the housing market recovers.
How long is the HARP program available for current home owners?
The HARP (Home Affordable Refinance Program) recently expanded its guidelines and extended the program to December 31st 2013, but why wait to take advantage of lower payments? Prior to the HARP 2.0 mortgage program release on March 19th 2012, responsible homeowners had no good option to lower their monthly mortgage payment. They were told by modification companies that the only way they could lower their monthly payment was to intentionally go behind on their mortgage payments to qualify for a modification. This would severely affect borrower’s credit, mortgage payment history, and the ability for homeowners to borrow in the future. The other option was to intentionally go into foreclosure and walk away because they no longer had any equity. This is bad for the borrower and the lender.
The difference with the HARP 2.0 mortgage program is that it rewards responsible homeowners who are current on their mortgage payments by lowering their interest rate, fixing the loan, and in turn, lowering monthly payments. Many times there is no appraisal needed as the LTV (loan to value) has no limit for the HARP 2.0 program. Homeowners now have incentive to stay in the current home even if the value of the home is lower than their current loan. The HARP 2.0 program was designed to stabilize the housing market and give responsible homeowners an alternative to intentionally going behind on payments, walking away from the home through foreclosure and damaging their credit for many years and future borrowing potential. Stay in your home and lower your payments with the HARP 2.0 mortgage program.
How do I know if I’m eligible for the HARP refinance program?
In order to qualify for the HARP 2.0 mortgage program, all the following conditions must apply.
- The mortgage loan must be owned or guaranteed by Fannie Mae or Freddie Mac currently and established prior to May 31st 2009
- The current mortgage LTV (Loan to Value) must be greater than 80%, but there is no maximum
- The borrower must be current on mortgage payments within the last 6 months and can have no more than 1×30 day late payment within the last 12 months.
- The mortgage could not have been refinanced under HARP previously unless it was refinanced under the initial HARP program between March 2009- May 2009.
The best way to determine your eligibility is to fill out the form or call to speak with a local OC mortgage specialist today.
Fannie Mae and Freddie Mac have adopted changes to the Home Affordable Refinance Program (HARP) and you may be eligible to take advantage of these changes. If your mortgage is owned or guaranteed by either Fannie Mae or Freddie Mac, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.
We Are Not The Government.
Please note that My OC Mortgage is not a mortgage lender. This is not, and is not intended to be a mortgage application. Once you have completed this online inquiry (information request form) your information will be sent to our participating lenders. The lender will contact you by phone, automated calling, and/or email. By submitting your expression of interest you are consenting to receive telephone calls from our participating lenders even if you have previously listed yourself on any internal company, state or federal Do-Not-Call list.