Time Is Running Out on HARP 2.0

Time is running out on you chance to take advantage of refinancing your home under HARP 2.0 – it is set to expire December 2018.

What is HARP?

Originally created in March 2009, the Home Affordable Refinance Program (HARP) has helped millions of U.S. households to refinance their mortgage and save a substantial amount of money.

The HARP program was originally developed to help home owners who found themselves underwater on their mortgage.

When the housing market crashed 10 years ago, many people found the value of their homes had dropped and their Loan to Value (LTV) ratio was above 80%.

In other words, they had lost much, if not all of the equity in their homes and because of a high LTV ratio, they were unable to refinance their homes to take advantage of lower interest rates.

The program has been restructured a couple of times and now, people who may not have qualified under an earlier version of HARP may now be able to take advantage of the program.

But you may have to hurry to take advantage of the current program as it is set to expire at the end of the year.

How Can You Benefit With A HARP Loan?

Some benefits of the HARP program is that it could allow you to lower your interest rate (which could save you a substantial amount of money over the course of your mortgage), avoid having to get PMI insurance and avoid having to get an appraisal on your house before you refinance.

It is important to look at the overall benefits of the program in relationship to your specific situation – everyone is unique and amount of benefit will be different based upon the change in interest rates, length of time to payoff your mortgage and other factors.

In order to qualify for a HARP 2.0 refinance you will have to meet the following criteria:

  • Your loan is owned by Freddie Mac or Fannie Mae.
  • The loan originated on or before May 31, 2009.
  • Your mortgage payments are up to date
    • No late payments (30 days or more) in the past six months
    • No more than one late payment in the past 12 months.
  • You’re refinancing your primary residence, a single-unit second home, or an investment property with four or fewer units.
  • Your LTV ratio is greater than 80 percent.

There are thousands of households who could still take advantage of HARP before it expires at the end of this year.

Now may be the time for you to do a little research and see if refinancing via HARP is right for you.