HARP is commonly referred to as the Home Affordable Refinance Program. In an effort to help stabilize the housing market, the government developed the program to help homeowner’s who either did not have enough equity for a traditional refinance or who were having problems making the monthly payments on their current mortgages.
The Fannie Mae refinance is used under two different names: the Refi Plus and sometimes DU Refi Plus (DURP) program. It permits to refinance a 1st mortgage up to 105% of the appraised value of the property. Junior liens might be subordinated to an unlimited combined loan to value. The Fannie program includes similar prices to a normal refinance program. You are able to refinance a Fannie loan with any Fannie lender offering the program.
Who can get a Harp Loan?
This loan is helpful because it refinances your 1st mortgage, for persons that:
- are “under water” – these homeowners owe much more than their house is worth
- have an interest rate that is higher than allowed
- have an adjustable rate mortgage that has to reset
- other such situations
If your loan associates with Fannie, then upon completing some short forms online, you will get an immediate online response.
If your current mortgage payment includes insurance, some of the greatest features of these types of refinance transactions are: generally lower closing costs and are more lenient underwriting.
Moreover, sometimes no appraisal is required, as the goal of this Harp refinance is to reduce your current mortgage payments. The maximum cash out allowed is a mere 250$.
IF you are searching for mortgage rates for HARP loans, it’s best to firstly call your lender. Then, announce them that your house is underwater and he’ll tell you what the rates would be for HARP loans. He will also give you more information on how to get a Harp refinance.
Most HARP loans start as usual loans until the appraisal comes back light. However, these are special programs and some may (unfortunately, for that matter) not qualify.