If you have a Fannie Mae or Freddie Mac backed loan and have little to no equity you may still qualify to refinance at today’s low interest rates according to a recently announced initiative from the White House. Is it possible that there is help on the horizon for the more than 10 million homeowners who are underwater on their mortgages?
The Home Affordable Refinance Program (HARP) was create in 2009 to assist almost five million homeowners refinance their loans and avoid foreclosure – yet only 822,000 homeowners have benefited so far. This begs the questions….If it didn’t help that many people in 2009 – why should it work now?
Today’s announcement by the White House detailed some major changes to the HARP. Here’s a few:
- No More Cap on Underwater Amount – any borrower, no matter how deep underwater, will be eligible for HARP.
- Lowered Costs to Refi – Elimination of certain risk based fees Fannie Mae & Freddie Mac charged for refinancing and reductions in number of homeowners who need an appraisal, and reduced costs of title insurance should help to reduce cost associated with refinancing.
- Insurance Coverage to be Transferred to New Loan – major mortgage insurers have agreed to automatically transfer coverage from old loans to new loans
The deadline for the HARP program has been extended to December 2013. The Obama Administration is optimistic that addressing these key issues will help many more homeowners to refinance and save as much a $2,500 a year. To view the formal press release issued by the Federal Housing Financing Agency on the HARP program click here.
To speak with a licensed mortgage loan officer and to find out if these major changes to HARP can help you refinance call 239-936-4232, visit us on the web at www.TeamInlanta.com