The HARP Program May Be Better For You Than Your Lender
The public awareness of the Home Affordable Refinance Plan® (HARP) continues to be very low. Despite press releases from the White House when it was launched, the financial institutions who offer the program do not advertise or promote this government program. HARP allows homeowners to refinance their homes at very low rates and reduce their mortgage payments by an average of $3,300 a year.
The program will run only until December 31, 2016, so it is important to start the qualifying process now.
SUMMARY: Homeowners nationwide can take advantage of a free government program which will enable them to save as much as $3,300 a year by reducing their mortgage payment. A free qualification form is here
HARP is Intended for the Middle Class
Unlike many governement programs intended to benefit large banks, qualified individuals for the HARP program are middle class Americans. HARP only applies to homeowners who have loans of $625,000 or less (unless you happen to live in a high-cost area). The program is intended to ensure homeowners have affordable monthly payments and to reduce the likelihood of default or foreclosure. Participating banks however often do not see the program as helping them, for several reasons
1. The program works with any lender, so you can move your mortgage to a new lender.
2. The program allows your equity level or LTV to be from 80%-125%, an amount often higher than what banks are usually comfortable with.
If it were up to the banks to make the program guidelines, they would make it hard for you to move to a different bank and not allow a refinance unless you have sustantial equity in your home. Overall, they'll want to discourage you from taking any action at all, so they continue collecting your existing mortgage at existing higher rate of interest. However, properly informed of the HARP program borrowers can request to take this route and reap the benefits, until the end of this year. If you haven't refinanced yet, you should inquire about a HARP loan today.
1. You may be able to reduce the term of your loan and pay it off quicker without changing the payment.
2. Keeping the same term, the average monthly savings for most borrowers is $275.
Millions of homeowners still qualify for the HARP program yet have not taken action to refinance and save money, You can check if you qualify here >>
To get a lower your payment, shorten your term, or possibly do both is the fundamental purpose of this program The only reason every qualified homeowner has not acted on this is because they are unaware of the program.
What are the Rates for HARP?
There are several websites that will help consumers compare mortgage rates and find the best lender. Since 2007, RateZip.com has been offering free mortgage comparison shopping and specializes in connecting eligible borrowers with HARP lenders in its network. RateZip has helped thousands of people find a HARP lender who is willing to help them qualify for the program with a lower rate.