On Monday, the Federal Government announced a review of the home affordable refinance program (harp), changes that The Washington Post reported by Zachary a. Goldfarb "will allow a lot more struggling borrowers Refinance Mortgages for today's ultra rates by reducing monthly payments for some homeowners and potentially providing a modest boost to the economy."
Harp program, which was launched in 2009, is designed to help. Those who are "underwater" on their homes and must do more than the homes are worth. To date, the post reported it had reached less than one tenth of the 5 million borrowers, which it was intended to help. Here's a quick breakdown of what you need to know about the changes.
What was announced? Improvements will allow some homeowners who do not currently have to refinance with the HARP. Changes to reduce fees for borrowers who want to refinance short-term mortgages and some other borrowers. They also eliminated the CAP, which allowed "underwater" borrowers who owe more than 125 per cent of what their property has access to the program.
Am I eligible? To be eligible, you must have a mortgage owned or guaranteed by Fannie Mae and Freddie Mac, sold these institutions May 31, 2009, or until the current ratio of the loan amount on the mortgage must be more than 80 per cent. A mortgage that had refinanced under the program shall disqualify you from the program. Borrowers cannot have not missed any mortgage payments during the last six months and cannot have more than one missed payments over the past 12 months.
How to take advantage of Harp? According to the federal housing finance agency, the first step that should be taken of the borrowers is whether mortgage loans owned by Fannie Mae and Freddie Mac. If so, borrowers should contact lenders offering refinances harps.
When the changes take effect? FHFA final publication expected changes in November. According to a fact sheet about time will depend on the creditor.
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