What is HARP/HARP 2.0?
HARP stands for the Home Affordable Refinance Program, which the government launched in 2009 to help underwater homeowners who are current on their Freddie Mac- or Fannie Mae-owned mortgages to refinance.
HARP allows high-LTV homeowners to refinance at the low rates lenders offer now. In 2012, the HARP program even underwent a revision, allowing even more borrowers take advantage of the program. This updated program is referred to as HARP 2.0.
When the housing bubble burst in late 2006, average home prices fell. This left millions of homeowners owing more on their mortgages than their homes were worth. Even worse, they were generally unable to refinance because of their high loan-to-value (LTV) ratios, even as mortgage rates fell to record lows.
Because the government created this program with certain circumstances in mind, HARP refinances aren’t available to everyone. Requirements dictate that:
- You must be current on your mortgage.
- You must not have made more than one late payment over the past twelve months.
- Your loan must be currently held by Fannie Mae or Freddie Mac.
- Your loan must have been issued prior to May 31st, 2009.
Other eligibility and underwriting guidelines will apply, depending on your individual financial situation.
Why pick Total Mortgage?
After 17 years of success, it’s safe to say that we know what we’re doing. Plus:
- We have some of the lowest interest rates in the country.
- No pre-payment penalties, ever. Pay off all your debt as fast as you can. We promise not to get grumpy about it.
- No pushy loan officers, just experienced professionals who will educate you as they help you get the financing that makes sense for you.
Think you’re ready to refinance with HARP? Give us a call or fill out the form on the right to find out more.