To many people affected by the housing market crash of the early 2000s, the Home Affordable Refinance Program (HARP) is music to their ears. HARP allows homeowners who are paying mortgages on houses that have lost their value to refinance it to more affordable terms.
The lower rate mortgage allows them to pay for the actual value of their home, rather than paying a higher mortgage for a house that used to be more expensive than it is now. Several mortgage companies provide assistance in getting a HARP home loan, including companies like Primary Residential Mortgage, Inc..
Government agencies designed HARP for people whose mortgage is “underwater.” An underwater mortgage refers to when the balance of your mortgage is higher than the market value of your property. In other words, even if you sell your home in an attempt to pay off your mortgage, you will still be in debt.
Refinancing helps solve this problem and frees up valuable resources so that homeowners can use the money to pay other expenses, such as food and utilities. HARP requires a minimum credit score of 620, and has fixed and adjustable-rate mortgage options.
Not a Lot of Time Left
The HARP program was supposed to end by December of 2016, but the Federal Housing Finance Agency decided to extend the deadline until September 2017 to give more people time to apply for refinancing. This is the second time the deadline has been moved to accommodate more people.
Unfortunately, that gives less than a year left for homeowners to get refinancing under HARP. HARP has already helped over 3.4 million homeowners; however, there are only about 323,000 loans left until the end of September 2017.
If you want to get your home refinanced under HARP, you should act as soon as possible. There is not a lot of time left.