The Home Affordable Refinance Program, also known as HARP, ever since it’s arrival in 2009, has helped as many as 3.3 million households of the United States of America in refinancing.
This phenomenal programme was successful in assisting hundreds and thousands of households if the homeowners applied.
Many of the home loaners in this US have this notion that the HARP is a little too good for them to be true.
During the past 8 years, mortgage refinance of HARP has assisted in supporting the economy of the United States and has saved several homeowners huge amount of money in the mortgage payments. The homeowners of the United States of America, who have lost the home equity have been benefitted by HARP in order to refinance today’s rates of a mortgage without even incurring the new mortgage insurances.
These typical households have saved as much as 30% annually on the payments from refinancing.
If your house has lost its value since you have purchased it and if you have been already been turned down previously, then you must consider submitting the HARP loan for your house’ refinance today. Today the mortgage rates are quite low and your potential to save is maximum.
Additionally, you might not have a long time to get this application in. This amazing HARP refinances programme will expire on December 2018.
Annual Average Household SAVINGS from Refinancing.
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HARP has been hugely elevated since it launched in 2009. The program now has simpler steps designed to get you an approved loan. What’s the extra bonus? HARP loans now also require less documentation. So what are you waiting for?
Basics of HARP 2.o mortgage was actually meant to give the homeowners some access to the refinance in spite of having almost no or very less home equity. In 2009, the government had launched the HARP or Home Affordable Refinance Program as a part of the year’s economic growth program. This HARP
Eligibility test which was kept for HARP was fundamental and basic.
To qualify for this HARP, the homeowners would have to show their present mortgage which had to be backed by either Freddie Mac or Fannie Mae before May 31 of 2009; also the fact that the history of the mortgage payment had to be strong; and their house’s loan-to-value at least was 125%.
Between the years 2009-2011, the HARP had its influence on as many as a million households. HARP would also have reached much more than the one million households, as it was comprehended if it had not had the 125 percent of the loan-to-value obstacle, and for the particular HARP clause that increased the mortgage lender’s usual mortgage liabilities.
That is why, in order to reach more and more households, the HARP 2.0 was planned and released.
HARP 2.0 can be regarded as an improvement on the HARP 1.0. This new one removed 125% loan-to-value obstacle that immensely helped the homeowners in the hard-hit regions like Nevada, California, and Florida in getting access to this HARP program. It had also removed the critical lender clause of liability that had slowed the early HARP’s adoption.
The Program changes were instant hits. HARP 2.0 had closed more loans in the first 1 year than the earlier HARP 1.0 had closed in the three years.
However, by this day again the HARP has slowed down considerably. The homeowners complain that they are not sure of how this program works, the homeowners are concerned about the fact that since they have been turned down earlier, whether they can reapply. This has resulted in the de- popularization of HARP.
According to an expert Ellie Mae, the mortgage lenders have started approving a greater percentage of the mortgage refinance than during the other periods since the HARP’s launch about 8 years before.
Right now, it is the perfect time for you to apply for the HARP loan refinances.
It might happen that you are having a 2nd or even 3rd mortgages attached to the house which is pushing your loan-to-value more than 80 percent. So if you are having such additional liens on your house, you would surely want to read the HARP Refinance Program Made Impossible or the HARP 2 Refinances with 2nd Mortgages in order to prepare for your loan subordination.
HARP program allows only the 1st mortgage to be paid in the refinancing. There is no allowance to pay off the credit card debt. One more usual hiccup for the borrowers considering the HARP revolves around the 2nd and the 3rd mortgage liens.
If your amount of equity at your house does not let you participate in the HARP or if you are being unable to pay off the credit card debt then the perfect alternative for you is going to be the mortgage refinancing program, the one which will allow the cash-out to pay the consumer debt.