Do I Qualify for HARP Refinancing?
What is HARP Refinancing?
HARP Refinancing is a program designed to help homeowners who are underwater on their mortgages. It was created to help those who owe more than their home is worth to refinance their home loan at a lower rate. The program was launched in 2009 and was set to expire in 2017, but was extended until 2021.
Am I Eligible for HARP Refinancing?
In order to be eligible for HARP refinancing, you must meet certain criteria. Your mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae, and you must have obtained your loan before June 1st, 2009. Your mortgage must also be current, with no late payments in the past six months and no more than one late payment in the past year.
What Are the Benefits of HARP Refinancing?
The primary benefit of HARP refinancing is a lower interest rate. This can save you hundreds of dollars a month on your mortgage payment. HARP also allows you to avoid paying Private Mortgage Insurance (PMI), which can add an extra cost to your monthly payment. Additionally, HARP allows you to take cash out of your home to pay off other debts or make home improvements.
What Are the Disadvantages of HARP Refinancing?
The main disadvantage of HARP refinancing is that you may not be able to get a lower interest rate than you currently have. This is because the program is designed to help those who are underwater on their mortgages, not those who are current on their payments. Additionally, you may have to pay closing costs, which can be expensive.
How Do I Apply for HARP Refinancing?
The first step in applying for HARP refinancing is to contact your current mortgage lender to see if they offer the program. If they do not, you can contact other lenders to see if they offer HARP refinancing. When you apply for HARP refinancing, you will need to provide proof of income, a credit report, and bank statements.