What Is HARP? Are You Eligible for This Program?

 

Homeowners with little and no equity can have the access to mortgage refinance known as Home Affordable Refinance Program. Qualified homeowners can opt for the government-backed HARP mortgage loan in Orlando.

Basically, this program was designed to help underwater homeowners refinance mortgage at a competitive interest rate back in early 2000s.

To be more specific, if anyone bought a house for $250,000 and few years later the property was worth $200,000. Now, the home was only worth less and also the homeowner still owes a significant amount of mortgage. If the loan to value ratio becomes 120% - it becomes extremely difficult to refinance, and that when HARP came.

If you want to understand the points of HARP loan in Orlando FL – read on this blog.

Who Qualify for HRRP?

Well, the loan was aimed at borrowers with a loan-to-value ratio of greater than 80%. When LTV of the level could not secure any other type of mortgage refinancing for lack of home equity – they can opt for HARP.

To relieve some of the payment stress of the borrowers – the government has introduced the loan program. As long as you can make on-time payment and meet the qualification along with the list of requirement – you can refinance to a better term and more competitive rate. This program has helped many homeowners.

Eligibility:

• The mortgage should be owned or guaranteed by Freddie Mac or Fannie Mae
• The loan should be endorsed on or before May 31, 2009
• The loan-to-value ratio should be greater than 80%
• The borrower should be current on the mortgage at the time with potential payment      history in last 12 months.

Advantages of HARP Loan

Many people opt for the refinancing option for several reasons:

• They can have affordable monthly payment
• They can spend less on overall interest
• They can able to secure more comfortable terms
• Homeowners can avoid paying heavy closing costs
• They can build equity faster by shortening the term
• There is no need to appraisal or mortgage insurance

After the implementation of HARP – it has gone through various changes. According to the recent update, many negative barriers have kept many homeowners from refinancing though HARP 2.0 program.