After Harp Expired Whats Next For You
But, the government extended the HARP program by two years, expiring in December 2018. Understanding Home Affordable Refinance Program. This program allowed you to refinance your mortgage, for either a lower interest rate or a lower monthly payment. This option is only possible for homeowners that dont have much equity in their home. But, these homeowners must be responsibly
Home Affordable Refinance Program For California Homeowners
The new Making Home Affordable Refinance Program is the Obama Administrations government refinance assistance program designed to help California home owners whos mortgage is over 80% LTV or upside down/underwater in value. This govt. upside down mortgage refinance program is unique because its designed to help home owners who are current on their mortgage payment but have not been able to refinance into a lower rate and payment due to declining home values.
The new HARP Refinance program is expected to play a big roll in stimulating the economy by reducing millions of homeowners monthly payments $200 $500 a month.
The media is referring to this loan as the Obama Refinance, HARP 2.0, or the HARP Streamline Refinance. Lenders often refer to it as the Fannie Mae DU Refi Plus loan or the Freddie Mac Open Access Relief refinance loan.
Refinancing into a lower rate was worth it regardless of how upside down my mortgage was. We didnt want to short sale, walk away, or uproot our family from our neighborhood, friends or kids schools. Temecula, CA Homeowner
HARP UPDATE 1/31/2013 HARP 2 is working!! We are approving HARP 2 refinance loans that other lenders will not or cannot do. We are NOT limiting the LTV to 125% or 150% like most lenders are. We will accept eligible loans if the PMI/LPMI provider will transfer. We are accepting EA1, EA2, EA3 approvals on DU Refi Plus. And its OK if you have a 2nd mortgage!
Is There A Harp Replacement Program For 2021
HARP expired in 2018. Since then, other programs have been created to help homeowners refinance with little or no equity. These include the Freddie Mac Enhanced Relief Refinance, the Fannie Mae HIRO program, and the Streamline Refinance for FHA, VA, and USDA loans.
But as real estate values continue to increase, theres less and less need for these HARP replacement programs.
Many homeowners dont realize their equity has increased. But rising property values benefit homeowners everywhere even those who arent looking to sell.
If your homes value has increased since you bought it, theres a good chance you have enough equity to refinance now.
Even homeowners who had no equity or were underwater in the past might be refi eligible thanks to the enormous spike in home values nationwide.
If youre still paying an above-market mortgage rate, find out whether you qualify to refinance. Todays interest rates are low enough that millions of homeowners could lower their rates and monthly payments.
Editors note: Two HARP replacement programs Fannie Maes HIRO and Freddie Macs FMERR were put on hold in August 2021 due to a low number of applicants. With home equity increasing nationwide, many owners are eligible to refinance without needing a special program like HIRO or FMERR. Contact a lender to check your equity levels and find out whether you qualify for a refinance.
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What You Don’t Need For A Harp Refinance
Misinformation about HARP requirements confuses homeowners, creating a stumbling block to homeowners who stand to benefit. Many homeowners mistakenly believe HARP is too good to be true and its qualifications are exceedingly complex so that very few borrowers can qualify.
Despite what you might have heard, the requirements for HARP eligibility are fairly simple. HARP 2.0 has further eased the requirements for eligibility and made the process easier, eliminating income verification and documentation requirements for some borrowers.
Here are some common HARP misconceptions:
Minimum Credit Score
HARP sets no minimum credit score, so a low credit score won’t disqualify you from HARP eligibility. Some HARP approved lenders, however, will set tighter guidelines, including a minimum credit score for homeowners who pursue a HARP refinance through them.
Minimum Loan Amount
Your property cannot be automatically deemed ineligible based on a minimum loan amount or outstanding loan balance. However, the program applies only to conventional conforming loans. HARP does not apply to jumbo mortgages, which are generally for loans in the amount of $417,000 or more.
Primary Residence Only
Your mortgaged property doesn’t need to be your primary residence. You can also seek a HARP refinance for your second home as long as it’s a one-unit residence, such as a single family residence or condominium unit. You can also refinance one- to four-unit investment property.
Maximum LTV Ratio
What Is The New Harp Program
HARP was a government program that was designed to help underwater homeownersspecifically those whose homes are worth less than the outstanding mortgage balancerefinance their loans. It allowed mortgagors to either lower their monthly mortgage payments or to pay down the loan faster by lowering their interest rates. Who qualifies for HARP replacement? 8 Eligibility Requirements for
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Fmerr Eligibility: Qualify For Mortgage Relief And A Lower Interest Rate
You may be eligible for FMERR if:
- Your current mortgage is owned by Freddie Mac*
- Your loan was originated on or after November 1, 2018
- Your LTV is at least 97.01% for a one-unit, owner-occupied resident
- You have made all your payments on time in the last 6 months
- Your mortgage balance is 97.1% or higher as a percentage of your homes market value, for a one-unit, owner-occupied dwelling
*You may not even know that your mortgage is owned by Freddie Mac. If youre unsure, use this lookup tool on the Freddie Mac website.
If you meet these conditions you are very likely to have access to lower rates but you need to act now before rates go up. Speak with your mortgage lender about relief options.
Harp: What You Need To Know
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Editor’s note: The HARP program, designed to help homeowners who owed more than their homes were worth, expired Dec. 31, 2018. Fannie Mae’s High Loan-to-Value Refinance Option and Freddie Mac’s Enhanced Relief Refinance replace HARP.
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Relief Refinance Program Benefits
These programs are intended to helphomeowners who are currently paying above-market mortgage rates, but cantrefinance because they have too little home equity.
The biggest benefit is that qualifyingborrowers can refinance into a lower interest rate and monthly payment, helpingthem afford housing costs and avoid foreclosure.
But there are other advantages tousing HIRO or FMERR, too. For example:
- No maximum LTV ratio If the home loan being refinanced is a fixed-rate mortgage, theres no maximum LTV for the new loan. That means if your mortgage is $150,000 and your home is only worth $130,000, you could refinance even though your loan-to-value is 115%
- Private mortgage insurance not required If you have PMI on your existing loan, it must be transferred to the new loan. But if you dont currently have PMI, you wont pay it on the new mortgage
- Streamlined application process Simplified documentation requirements mean you may not have to prove income, assets, or liability information. There is also no minimum credit score or maximum debt-to-income ratio
- You dont have to use your current lender Both electronic and manual underwriting options are available to the same or a new servicer
These loans remove many of the eligibility requirements for a conventional refi. Theyre often a faster and more affordable way for borrowers to get a lower rate and housing payment.
Harp 20 May Be The Answer For You
The Home Affordable Refinance Program is designed to help homeowners refinance their mortgages, regardless of the homes value! We all know that the housing market has gone down over the past 5-6 years and many homeowners in our area may have little or no equity left in their home. HARP is designed for those homeowners that have consistently made their mortgage payments on time lower their interest rates and reduce their principal and interest payments. The powerful product has helped almost 2.5 million homeowners, yet 9 out 10 homeowners fail to take advantage of this government program! Even though you may have been turned down in the past, new guidelines are allowing more homeowners take part in the program. Reach out to us today to see if you qualify for our HARP streamlined process!
HARP 2.0 may be the answer for you!
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Know The Dates And Seasoning Time Of Your Loan
One extremely important guideline of the RRP states that only loans that closed on or after October 1 of 2017 will be eligible. Any loans that were closed prior to this date are not able to qualify for the new refinance program.
Every loan that goes through the RRP must be properly seasoned. This seasoning means that the loan should have closed for at least 15 months and homeowners should have been paying for the loan for that amount of time or longer. If the loan is 15 months or older, it can close through the RRP refinance.
Harp May Not Cut Your Long
Additionally, consider the remaining principal balance of your current loan in deciding whether to proceed with a HARP refinance. The lower the balance, the less likely a HARP refinance will be worth it. And if you do decide to pursue a HARP refinance, make sure the mortgage term fits your needs. If you choose to go with a fixed-rate mortgage, you can refinance into a 30-year term or one as short as 8 years. For an adjustable-rate mortgage, you can choose between a five-, seven- or 10-year term.
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Consumer Guide To Understanding Harp Loans
Home Affordable Refinance Program® and HARP® are registered trademarks of the Federal Housing Finance Agency . MortgageCalculator.org is not associated with FHFA or any government program. Official information about the Home Affordance Refinance Program is located at .
In 2008 the housing bubble burst, and this caused home prices to go into a free fall. By the time all was said and done, many homeowners found themselves with a house whose mortgage was now higher than the total value of their home. If these homeowners tried to refinance their properties with the new lower interest rates, they found themselves getting turned down. They were turned down because almost all lenders require a loan-to-value ratio on a property to be 80% or lower to qualify for refinancing without adding on private mortgage insurance.
For example, if a house was bought at $160,000 but was now only worth $100,000 after the housing bubble collapse, and the owner currently owes $120,000 on the original mortgage, the loan-to-value ratio is 120%. By adding private mortgage insurance, most homeowners found the value of refinancing null and void.
This is where the Home Affordable Refinancing Act comes in. We will go over what this program is, how it works, who is eligible for financing, any changes to the current program, and more. You’ll leave with a very good understanding of this program, and you should have a good idea if this is an option you should pursue or not.
Harp Replacement Program Requirements
|Youre eligible for the Fannie Mae High-LTV Refinance Option if:|
|Youre eligible for the Freddie Mac Enhanced Relief Refinance Mortgage if:|
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Freddie Mac Enhanced Relief Refinance Mortgage
This program is for Freddie Mac borrowers who are on time with their monthly payments but are disqualified from the standard “no cash-out” refinance option from Freddie Mac because the new mortgage would exceed maximum LTV limits. There is no maximum LTV ratio for fixed-rate mortgages, while adjustable-rate mortgages have a maximum LTV of 105%.ï»¿ï»¿
Freddie Mac Enhanced Relief Refinance
Similar to the Fannie Mae high loan-to-value refinance option, the Freddie Mac Enhanced Relief Refinance program benefits homeowners who have little equity in their home but want to refinance to more competitive rates. This program is geared toward homeowners who currently have a mortgage through Freddie Mac, are current on their payments, and arent eligible for a traditional refinance because their LTV ratios are too high.
With Freddie Mac Enhanced Relief Refinance, your minimum LTV ratio on a one-unit home would have to be 97.01%. Minimum LTV ratios will differ depending on how many units are in the home and whether its a primary or secondary home, or an investment property.
With this program, you arent required to pay for new mortgage insurance, and any existing mortgage insurance would transfer. You also dont need to provide as much documentation around income, employment, and assets as you would if you were moving forward with a conventional refinance.
You can use this Freddie Mac program to refinance your mortgage as many times as you want, whereas with HARP, you were limited to only one time. Unfortunately, though, if you were a beneficiary of HARP, you arent able to refinance again through the Freddie Mac Enhanced Relief Refinance.
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The Home Affordable Refinance Program : What You Need To Know
On Monday, the federal government announced that it would revise the Home Affordable Refinance Program , implementing changes that The Washington Posts Zachary A. Goldfarb reported would allow many more struggling borrowers to refinance their mortgages at todays ultra-low rates, reducing monthly payments for some homeowners and potentially providing a modest boost to the economy.
The HARP program, which was rolled out in 2009, is designed to help. Those who are underwater on their homes and owe more than the homes are worth. So far, The Post reported, it has reached less than one-tenth of the 5 million borrowers it was designed to help. Heres a quick breakdown of what you need to know about the changes.
What was announced? The enhancements will allow some homeowners who are not currently eligible to refinance to do so under HARP. The changes cut fees for borrowers who want to refinance into short-term mortgages and some other borrowers. They also eliminate a cap that prevented underwater borrowers who owe more than 125 percent of what their property is worth from accessing the program.
How do I take advantage of HARP? According to the Federal Housing Finance Agency, the first step borrowers should take is to see whether their mortgages are owned by Fannie Mae or Freddie Mac. If so, borrowers should contact lenders that offer HARP refinances.
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Take Advantage Of Historically Low Interest Rates With Refinance Relief Programs
These new programs are important because mortgage rates have plunged in the last 18 months. The 30-year-fixed mortgage rate hit its lowest level ever in early January 2021, bottoming out at 2.65%.
Even as of October 2021, 30-year fixed-rate mortgage rates hovered just below or slightly above 3%.
Todays Mortgage Interest Rates: October 21, 2021
|Weekly Rate Trends|
Copyright 2021 Freddie Mac. Averages are based on conforming mortgages with 20% down.
Homeowners with home values that were too low relative to their mortgage balances were barred from taking advantage of these historically low interest rates and from the substantial monthly savings that came with them.
Thats where HIRO and FMERR come in. Both programs allowed homeowners to refinance their Fannie or Freddie mortgages, even if their homes were underwater, or higher than their homes market value. Though these relief programs are currently paused, many homeowners are finding they can still refinance to a lower payment thanks to rising equity and low interest rates.