The 10 Most Important Facts You Need To Know about HARP 2.0 Refinance

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It has been over several month since the new and improved Home Affordable Refinance Program version 2.0(HARP 2.0 …for short), has been in place. HARP 2.0  is designed to assist homeowners in refinancing their mortgages – even if they owe more than the home’s current value.The primary expectation for Home Affordable Refinance is that refinancing will put responsible borrowers in a better position by reducing their monthly principal and interest payments, reducing their interest rate, reducing the amortization period, or moving them from a more risky loan structure (such as an interest-only mortgage or a short-term ARM) to a more stable product (such as a fixed-rate mortgage). Here are the 10 most important facts that you need to know about this program.

  1. HARP 2.0  is not an FHA Streamline. HARP mortgage program is administered through Fannie Mae and Freddie Mac. FHA Streamline Refinances are performed through the FHA. However , the programs have similarities.
  2. Your Loan my be own by Fannie Mae or Freddie Mac. In order to find out who own your current loan, you can contact your current lender or you can go to the following links: Fannie Mae http://www.fanniemae.com/loanlookup    or http://www.freddiemac.com/mymortgage.
  3. Your current loan must have been delivered to Fannie Mae prior to 06/01/09.If not, your loan remain ineligible for HARP.
  4. You can only use the HARP mortgage program one time per home. If you used HARP 1, you cannot use HARP 2.0.
  5. Your HARP 2.0 refinance can be done by any lender. You have the choice to pick and shop around for a lender
  6. The property can  be your principal residence, second/vacation or investment property. Now, if the lender denies you for a HARP program due to the occupancy status of the your property, go to another lender.
  7. You must be current on your mortgage. You must have not been delinquent in the most recent 6-month period, or had more than one 30-day delinquency in months 7 through 12.
  8. You can not cash-out with a HARP loan. The HARP mortgage program doesn’t allow cash out refinance. Only rate-and-term refinances are allowable.
  9. You can have equity or  You can be underwater on your mortgage. The HARP 2.0 program makes it possible to refinance your current loan into a lower payment regardless of present Loan-to-value. Now, different banks are using different variations of the HARP 2.0 program. The edits are subtle, but they’re enough to cause some people to get denied who should otherwise have been approved. If you’ve been turned down for HARP 2.0, just try with a different bank.
  10. You don’t have to have a financial hardship to qualify. Unlike the  Home Affordable Modification program (HAMP) which is intended for borrowers who do not have the ability to make their mortgage payments, even with a refinance and document a financial hardship, the HARP 2.0 program can help you  qualify for a lower interest rate or better terms.

Now, the Home Affordable Refinance Program will not stop a foreclosure . If you find yourself at risk of a foreclosure contact your lender right away to explore your options.

 

 

 

 

 

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