HARP, commonly known as the Home Affordable Refinance Program, is a mortgage refinance program started has helped more than 3 million people in the past with their special mortgage plans and lower rates. HARP provides customers with a chance to get a mortgage loan for more than the worth of their house.
In 2009 when the real estate market had to face a serious downturn and there were various new rules and regulations issues related to the real estate market there are various issues that companies had to deal with. HARP developed different plans that allowed customers to save a decent amount of money even on their monthly payments. That is why they have upgraded the guideline to assure that customers will always get the best facilities.
HARP Policy Guidelines for 2018
Good news for mortgage refinancers! In 2018, there are a few changes to the HARP guidelines that will benefit homeowners. The biggest upside for 2019 is now the house doesn’t have to have a loan signed before May 2009. Home owners can easily have the loan they need, no matter when the home was purchased.
The special program has been designed for the replacement of the HARP to assure that customers will get a high LTV to refinance. In the previous programs, home owners were not allowed to get the high LTV. There is a different guideline that you will have to follow for the latest program because that is the only way you will get the services that you need.
- Home owners must have their loan through Freddie Mac and Fannie Mae.
- With the lower interest rates on the loan and the shorter loan term, you’ll be allowed to manage the loan in limited time. You can easily make all payments on time.
- Making sure that your LTV is 95% or higher assures that the value of the home is 100%.
- Between the original note date and the refinance loan date should have a difference of at least 15 months or more.
- Assure that in the previous 6 months there should be no missed payments on the mortgage of the home.
- There should be only a single missed payment on the homeowners mortgage in the past 12 months.
- After 15 months homeowners can use the program once again to refinance
- Homeowners who have a previously refinanced through HARP are also eligible.
Lower rates of HARP
The best thing about HARP is that they have the lowest possible rates, you will only need to have an 20% equity on the home to qualify. It will allow homeowners to easily manage even some of the biggest loans at affordable rates. Not only will a homeowner be able to keep more money based on their monthly income, but they’ll generate more profit in the long run as the interest amounts keep dropping. However, homeowners have to carefully select the policy that they would like to have to assure that they can easily manage the payments in the long run.
Different HARP version
There are different versions of the HARP policy available. Here’s a quick overview of all the versions so homeowners can select the one they are most comfortable with:
Introduced in 2009, the OG of HARP lending allowed borrowers to refinance up to 12.5% of the loan to value. Homeowners can easily compare between the value of the home and loan balance. The loan has been approved by the authorities that make it easier to manage the services.
It was the policy that was introduced in 2012. HARP reduced the restrictions to assure better services to the customers. The made it easier to manage the refinance for the customers to assure that they can easily manage to pay the loan payments and manage to save some extra money.
This is the most current version. Introduced in 2018 with little upgrades in the loan payments and guideline process to assure that customers can easily manage the loan and the services.
HARP has introduced some of the best and most reliable services for the home owners interested in lowering their mortgage payment. With lower mortgage rates it’s easier for the loan owners to manage the loan payments easily. Comparing all the policies properly before making a decision ensures homeowners get the refinance option that fits their needs.