- Home Affordable Refinance Program (HARP)
You may have heard that President Obama plans to open up refinancing to more homeowners who are underwater. If you’ve been hearing questions about this program or are just curious about what the plan involves, here are some of the major highlights:
What’s Really New?
- First, it’s important to realize that the president’s proposal is not a new program, but a revision to the current Home Affordable Refinance Program (HARP)
- Refinance, no matter how underwater…previously homeowners could only refinance if they were 25% or less underwater and many back only let people who were 5% or less
- No appraisal necessary IF Fannie Mae or Freddie Mac can electronically estimate the home value through their valuation models
But Keep in Mind…
These updates to HARP only apply to people whose mortgage is currently secured by Fannie Mae or Freddie Mac and whose loan was securitized by Fannie Mae or Freddie Mac prior to May 31, 2009. So chances are if you have refinanced since May 2009, you will not qualify to refinance under the new HARP revision.
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