HARP 2 Extended Due To Popular Demand
Refinancing your home may be more affordable than ever before, under the Home Affordable Refinance Program, or “HARP 2”. If your loan amount exceeds the value of the home, then HARP 2 allows borrowers to refinance at a lower rate and reduce the term of their loan.
Due to it’s overwhelming popularity, it was recently announced that borrowers will now have until the end of 2015 to land a new loan so far, more than 2.2 million have taken advantage of the popular HARP 2 program.
Want to know if you’re eligible?
Here is a list of eligible loans under HARP 2:
· Loans that are backed by Fannie Mae or Freddie Mac and securitized prior to June 1, 2009. To find out if your loan is owned by Fannie or Freddie, you can visit their website to determine.
· Loans that are current with no late payments in the past six months and paid on time at least 11 of the past 12 months.
· HARP 2 refinances are eligible for loan amounts of $417,000 or less and allow the flexibility to finance in necessary closing costs. This product does not allow the borrower to pay off an existing equity line or second mortgage; it allows a refinance of the current first mortgage.
· If the original mortgage did not carry mortgage insurance, the HARP loan will not require mortgage insurance, regardless of the current loan to value.
· HARP 2 allows the borrower to use any participating lender for the refinance. You are not required to use your current servicer. Different lenders may have limits on maximum loan to values or credit guidelines, but you are not required to use your current servicer.
· Borrowers are only allowed to use the product one time.
· HARP 2 is not a forgiveness of debt; it is a refinance of a current mortgage.
The mortgage team at CresCom Bank is experienced and knowledgeable on this product. If you have additional questions or know of anyone interested in a HARP 2 refinance, please contact one of our mortgage experts for more details.