Data Facts Blog


H.A.R.P. Has Been Extended!

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The H.A.R.P. (Home Affordable Refinance Program) program which enables struggling homeowners to refinance their mortgage, whose home value has declined, has extended its application deadline to December 31st 2015.

H.A.R.P. is a federal-government program designed to help homeowners refinance at today’s low mortgage rates even if they owe as much or more on their mortgage than their home is worth. The goal is to allow borrowers to refinance into a more affordable or stable mortgage. Most homeowners eligible for a HARP refinance are able to reduce their monthly payment by lowering the interest rate on their mortgage. Other homeowners can use HARP to convert their adjustable mortgage into a more predictable, fixed-loan program. You also have the option to do a HARP refinance for a shorter-term loan, which will help you build equity in your home at a faster pace.

To be eligible for a HARP refinance homeowners must meet the following criteria:

  • The loan must be owned or guaranteed by Fannie Mae or Freddie Mac.
  • The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
  • The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
  • The current loan-to-value (LTV) ratio must be greater than 80 percent.
  • The borrower must be current on their mortgage payments with no late payments in the last six months and no more than one late payment in the last 12 months. 

Borrowers should contact their existing lender or any other mortgage lender offering HARP refinances.  For more information, please go to http://harpprogram.org/

 

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Things You Need To Know About Harp 2.0

Millions of homeowners are underwater on their mortgages, owing more than their homes are worth. This year HARP (Home Affordable Refinance Program) has been re-vamped to allow more homeowners to refinance their mortgages.

This is great news, as Corelogic estimates that 11 million homeowners are underwater and could benefit from assistance. The new changes to HARP will allow the homeowner to refinance regardless of how much their home has dropped in value.

There are some guidelines in order to refinance under HARP. In order to be eligible:

–  The mortgage must be owned by Fannie or Freddie (and originated before June 1, 2009)

–   The mortgage must have been paid on time for the last 6 months, and have no more than 1 30 day late in the last 12 months

–   The current loan-to-value ratio must be over 80%

–   Previous participants in HARP are not eligible

This is GREAT news for homeowners who have kept up with their payments!  These homeowners can move forward in the program right away. Remember, this program is available through December  2013.  Even if a homeowner currently has some recent late payments, if they can get and stay current, they can eventually take advantage of HARP to refinance their home.

Fees have been reduced for HARP loans, and in most cases, an appraisal is not needed.  Lenders can utilize  Automated Valuation Models (AVM’s) to instantly determine the home’s value.

Lenders must then show that the homeowner reaps at least one of these benefits by participating in HARP:

–   The new loan reduces the size of the monthly payment

–   By refinancing, the loan is changed to a more stable loan product

–   The new loan reduces the interest rate

–   The refinance moves the loan to a shorter term

These new changes are expected to help millions of homeowners refinance to a more manageable, stable loan, and allow them to stay in their homes and avoid foreclosure.

 

~~Susan McCullah is the Product Development Director for Data Facts, a 22 year old Memphis-based company that provides mortgage product and banking solutions to lenders nationwide. Check our our website for a complete explanation of our services.