Benefits of harp program

[Shirley Ayala]

HARP is made to help you get a fresh, more cost-effective, more stable mortgage. HARP refinance loans require a loan application and underwriting procedure, and refinance costs can employ. Millions of homeowners found them-selves in-a tough scenario after the U.S. As stocks soared nationwide, property costs dropped. Several new homeowners found the worth in their domiciles decrease below the balance of their mortgages, o-r very nearly so.

Just take for example a home that was bought for $160,000 but is now worth $100,000 as a result of market decline. Further, assume the homeowner owes $120,000 about the mortgage. In this circumstance, the loan-to-value ratio would be 120-volts, and if the homeowner made a decision to refinance, he would also need to buy private mortgage-insurance. The extra cost could nullify a lot of the benefit of refinancing, and so the homeowner could be properly prohibited from refinancing, In the event the homeowner was not currently spending money on PMI.

You might be entitled to HARP if you meet all of the following criteria:

The mortgage must be possessed or guaranteed by Freddie Mac or Fannie Mae.

The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.

The mortgage can not have now been refinanced under HARP formerly until it is a Fannie Mae loan which was refinanced under HARP from March-May, 2009.

The present loan-to-value (LTV) ratio must certanly be more than 80-acre.

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