Harp Refinance Reviews – Best Mortgage Options 

arp Refinance was created by the Federal Housing Finance Agency in order to help homeowners who are currently paying for their mortgage payment, but are having a hard time coping up with these mortgages. As a result homeowners are owing so much more than what their home is valued at. Harp Refinance program reveals how these homeowners can save up to thousands of dollars with lower Harp Refinance rates and at more favorable terms as compared to what other financial institutions can provide. read this full Harp refinance review to understand all the details.

Harp Refinance requirements though makes this Harp Refinance program available for those who have excellent credit scores. As mentioned the Harp Refinance rates are way better than compared to similar services found in the market today. This is one of the Harp Refinance rules that those who may be interested should know about. Based on the Harp Refinance calculator computations closing costs can be bundled into the new loan so that there will be no need to pay any cash up front.

Many home owners are confused about what mortgage refinancing is all about let alone what is Harp Refinance and its role. Harp Refinance helps people find their way in the midst of these confusion. What is Hard Refinance? This could be any homeowners’ roadmap to saving a lot of cash and most of them are not even aware of this. Interested to know more about the Harp Refinance requirements? How about knowing more Harp Refinance rules? Knowing all of these information can help anybody who is just about to start on their Harp Refinance program. In fact, Harp Refinance requirements are clearly shown in their downloadable PDF guide. 

What is Harp Refinance? 

It is clear that Harp Refinance program is specifically designed to help homeowners get a new, completely affordable and stable mortgage program since the launching of Harp Refinance 2014 or better known as Harp 2. These changes were clearly emphasize even in Harp Refinance 2014. The process of loan application is easy. All that borrowers need to avail of this opportunity is to get in touch with HARP specialist. Even during Harp Refinance 2014 the requirements for these documents were mentioned. According to the information found in Harp Refinance 2014 this includes the latest income tax return.

Homeowners must provide information about any junior lien mortgage made on the house. They also need to divulge just how much remaining account balances they have and the respective monthly payments made on these debts as well. They need to specify which financial institution collects their monthly mortgage payments. This will reveal who is specifically responsible for the management accounting of previously loans made. There will be times when the loans are owned by a group of investors. Most of these investors hire loan servicers that will directly deal with these homeowners on their behalf. Many of these lending services even leave this responsibility to the loan servicers. This means if your loan servicer is Bank A, the investor could be Fannie Mae, Freddie Mac or a group of investors.

By visiting the official site for this program, this will lead applicants to the information that they are searching for. All that it takes is just a few clicks on the site through the links provided. 

Harp Refinance 

All that it takes to start the process for application to this program is to click the link. A specialist will analyze the data as directed or guide to all the benefits has to offer. Receiving the approval or not to these applications are not given in an instant. Applicants are reminded to be patient since this shall be process as soon as possible. The process will be easier if the necessary documents are submitted to the Harp Refinance specialist.

This does not offer cash out to the borrower for purposes of paying out the other loans that he has made. Be reminded however, that rates given will be based on the current market rates in effect at the time of the refinance. These interest rates will vary will change across lenders over time as the market naturally adjust and changes. These loans must not have prepayment penalties or balloon payments.

Even those that have first lien and second lien mortgages can still qualify for these loans provided that the lender that has the borrower’s junior lien mortgage must agree to remain in a junior lien position. The borrower must also show that he can meet the new payment terms despite of the presence of the first lien mortgage. Delinquent homeowners are not qualified to joint this program especially if they have allowed their payment due to be unpaid for the past 12 months. However, potential borrowers can still ask the servicer if modification under the Home Affordable Modification Program is another option worth looking into.

Borrowers are encourage to shorten the terms of their mortgage for a valid reason. Harp Refinance reviews shares how borrowers who owe more than their mortgages need to pay down the balance on their previous loans. By applying for a shorter term mortgage they will be able to pay down the amount they owe faster as compared to somebody who applies for a traditional 30 year mortgage. Harp Refinance reviews says that one of the advantages of taking this type of loan is that the interest rates are much lower.  This can provide them the opportunity that they need to start enjoying reduce monthly payments. Thus, this will strengthen their financial condition and lower their credit risk. Eventually, this will result to better credit history and improvement on credit scores. 

Harp Refinance Program 

To be eligible for these refinancing program there are some basic requirements which includes the following: This program is for those who are current on their mortgage with no record of 30 day+ late payments in the past six months. The applicant must be without late payments even with just one in the past twelve months. The homeowner must consider the property as his primary residence. It can be a 1 unit second home or 1 to 4 unit property investment.

The loan is owned by either Freddie Mac or Fannie Mae. A set of Loan look up tools are given in the official site for this service to help borrowers determine if they fall under these mortgages. With the use of the online tool, even the date when the loan was originated shall be revealed. This must be on or before May 31, 2009 though. The current loan to value ratio must be greater than 80 percent. This can be calculated as well through the online calculator tool provided.

Harp Refinance reviews share that these mortgage cannot be refinanced by Harp unless it was previously a Fannie Mae loan that was refinanced under Harp from March to May 2009. Borrowers must have the ability to pay the new mortgage payments. The Harp Refinance will improve the durability and affordability of these Harp Refinance rates. For those who want to know if they qualify for these mortgage they need to go through an application process. They need to have their application approve. They will also undergo a similar process like those found in the original mortgage.

A Harp lender will work with the applicant guiding him every inch of the way. To be prepared for the application process here are some process. By the way, this is similar to what the borrower will encounter from similar application. To start off, make sure to gather as much as basic financial information there is. It would be easier to provide the mortgage company with the information that they need. The mortgage statements might be required which includes information on the second mortgage, if applicable. Include also a copy of the income details like the income tax return or paystub.

Applicants can inquire from the mortgage company if they are approved by Harp as lender. Since the current mortgage company has the records of the loan file it would be easier for them to provide the needed information for additional verification about the source of income. Another alternative is to find a list of approved Harp lender and ask them if they would be interested to refinance mortgage. The lists are subdivided into Fannie Mae or Freddie Mac. If in case some lenders say that they think that the borrower is not qualified for these loans ask the specific reasons for this. It never hurts to clarify or better yet talk with another lender who can give a second opinion.  Once approve, the lender will guide the borrower to the entire process even until the closing process.

For loans owned by Freddie Mac, the borrower has two options to help them make timely mortgage payments. This can even help them cope up with refinance even during the midst of declining property values. The first option is to refinance through existing lender. This is especially true if the company is already registered in this program. This hastens the process of application. There are also fewer requirements needed to comply for this new mortgage refinance loan. However, there are some cases that might require that the principal and interest payment goes beyond 20 percent. In such case, there is no need for new appraisal. It would be easier to know the score by asking the present lender if they offer Harp.

Another alternative is to apply with a different participating lender. This is up to the borrower if he chooses to pursue a refinance from a participating lender that is different from the existing lender. Because a different lender will not have the previous documents and information there might be a need to requalify for this mortgage or in some cases to re-underwrite the loan. There are cases when a new appraisal might be required. To shorten the process, borrowers can view the list of Harp participating lenders that might be willing to work with the borrower. 

Harp Refinance Rates 

Harp Refinance reviews shares that the rates given for these refinance loans shall be based on current market rates at the time of the refinancing. However, homeowners are reminded that they will be subjected to fees and similar charges by their lender. The interest rates will also vary per lender since the market adjusts.  Furthermore, according to Harp Refinance reviews this program is enhancing the Fannie Mae and Freddie Mac’s existing use of automated valuation model or AVM that estimates properties. If there is an AVM a new appraisal and rates will no longer be needed. However, for those lenders that have not yet made use of this system a new appraisal will be required. Thus new rates will apply.

Harp Refinance reviews says that when borrowers submit their loan application to their lender they will be given Good Faith Estimate or Truth in Lending Statement that will show the new interest rates, mortgage payments and the amount that they need to pay for this new loan. Those who are just on the process of applying for this loan they need to check out the terms and rates. If this is not an improvement on their former loan, this means this loan might not be for them. Remember that the goal is to help the borrowers recover from setbacks on their mortgages. This is equally through for both whose homes were underwater and those that are not but have suffered from similar circumstances.

The interest on the portion of the credit extension greater than the fair market value of the home is not tax deductible. For those who are curious if since Federal Housing is handling this, the bad news is that for Federal income tax purpose this is not tax deductible. The applicant must consult a tax adviser if they need clarification or more information about the deductibility of interest and charges. The information provided is not yet complete. For those who are about to consult the lenders that they are eyeing on, they need to get a comprehensive summary of the offers. This includes all the information that they need like rates and the required monthly payments for these loans.

There are some servicers that may not choose to offer this type of loans or if they do offer these they will not implement all of the flexibility available under this program. Kudos to the government though for conceptualizing a program like this. Although there are some detractors and even problems with the program. Still, the US government is trying its best to provide its citizen with a lifeline so that they will not lose their homes. The program is design to help homeowners cope up with the setbacks that present life and economy brings. 

Harp Refinance 2014 

Announcements were made for the Harp Refinance 2014 reports. According to financial experts those whose mortgage are owned by Freddie Mac or Fannie Mae are eligible for these loans. However, bad news for those whose address does not appear in the look-up tool of either site. To be fair, Harp provides a set of online tools that will quickly help borrowers find out if they are eligible or not. Harp Refinance has now significantly enhance this program ever since it was launched in 2009. However, the Harp Refinance program now requires less documentation and the guidelines are not as complicated as it was before. During this period, the program was specifically design to approve more loans.

The government has announced for borrowers to expect Harp Refinance 2014 to be launched phase by phase. From its original Harp Refinance program new updates were added. Harp Refinance 2014 was referred to as Harp 2. President Obama was said to waive the requirements back for Harp Refinance 2014. Hopefully, the new updates are better and favorable for homeowners more than ever. Borrowers have never given up hope that Harp Refinance 2014 would offer something different from its original Harp Refinance Program a few years prior to that. 

Harp Refinance 2015 

Every year there is something new with Harp Refinance program. For the year 2015, there are some changes from what was it offered for Harp Refinance 2014. The guidelines are as simple as it is now. Whereas Harp 2 is referred to as Harp Refinance 2014 whereas it refers to Harp Refinance 2015 as Harp 3. Efforts have been made to extend the application for this program until December 31, 2015. This will give a greater chance to struggling homeowners to avail of this program. MHA was even tasked to offer assistance to those who are in need of it. These new updates hopefully, is better than what Harp Refinance 2014 offers.

Homeowners whose mortgage interest rates are higher than the current market rate should seek an immediate reduction on their payments. They are given the right to do this. However, homeowners who are paying interest only have low introductory rates can expect to experience an increase in the near future. Those who are facing balloon payment will not see their current payment go down if they subscribed to a fixed rate and payment program. However, they can still save a great deal of money if they will reduce the amount of interest that they will pay for the life of the loan.

If the borrower have chosen a more stable fixed rate loan package he can avoid an increase in his future mortgage payment. He will be able to improve his ability to sustain his mortgage payments in the long run. All servicers whose loans are owned and guaranteed by Fannie Mae and Freddie Mac are required to participate in MHA. Other servicers are also encourage to do the same and follow these examples. After all, this will be a great chance to help fellow Americans who are in need.

Conclusion

This extension of the program for 2015 somehow gives hope to homeowners. They are expecting better rates than those offered for Harp Refinance 2014 and prior years before that. The Harp Program can help resolve the issues face by those who are behind on their mortgage payments but, were unable to get traditional refinancing all because the value of their homes has been reduce. However, these loans requires a loan application and underwriting process.

according to Harp refinance reviews, It is always the goal of this program to help homeowners to get a more stable and affordable loans with rates that they can easily pay for. However, borrowers are reminded that refinancing will not reduce the principal amount that they owe to the first lien mortgage holder or any debt that they owe. The name of the game is to provide credit worthy homeowners a way to pay their mortgages. Hopefully the new mortgages offers both better terms and rates.

Click here for Harp Refinance Mortgage