The Home Affordable Refinance Program, otherwise known as HARP, is a program that operates with the purpose of getting better mortgages for homeowners. The program was created in 2009 by the Federal Housing Finance Agency. If you have a mortgage that you are having trouble with for any reason, then it is worth taking some time to look further into HARP and its application process.
The resources provided by HARP will be helpful to you if you would like to refinance your home but are having trouble doing so through the typical refinancing processes offered by many financial institutions. Refinancing can be done for a number of reasons, with the biggest usually being to reduce the amount of your mortgage payments to better fit your current financial situation.
To utilize HARP to get a better mortgage, you will need to go through an application process and meet certain criteria. The best way to find out if you are eligible for help from HARP is to ask the company that your mortgage is through directly if they are a part of the program. If they are, then they will be able to help you get everything started. As far as requirements go, your mortgage will have to be owned or guaranteed by Freddie Mac or Fannie Mae, and you will have to be up to date on all of your mortgage payments for the past year. The loan-to-value ratio for your home must also be more than 80%. You also only get to use HARP once, so if you already have used it in the past for your current mortgage, then you will need to find other options. These are just a few of the basic requirements to be involved with HARP.
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Your mortgage company should be able to help you directly with HARP if they are involved in the program. With this being said, it is also worth taking some time to shop around and compare the various terms that are being offered by multiple mortgage companies. This is the best way to ensure that you are getting the best rate possible and making the most of your refinancing opportunity.
These are just some of the basic things that you should know about HARP and how it can help you get a mortgage that is better suited to your needs and budget. Many homeowners just like you have seen great success with the program, ending up with lower mortgage payments and a more stable financial situation.