The Home Affordable Refinance Program, aka HARP, is not brand new. In fact it is about 2 years old! What is new, is the set of guidelines that determine if one is eligible to qualify for this wonderful program!
Back in 2009 The Obama Administration launched HARP to allow borrowers who were current on their Fannie Mae or Freddie Mac "backed" mortgages to refinance their property. The hope of this program was undoubtedly to allow those who were making payments on their mortgage to capitalize on the lower interest rate, and in turn keep them in their property and away from default.
It specifically addressed those whose loans were between 80% and 105% of the value of the property, and therefore provided some form of relief underwater homeowners. However it was too minor, and waves of homeowners who were further underwater began to default.
About halfway through 2009 the administration decided that it was necessary to open up the program to homeowners who owed as much as 125% (of the value of their home) and further extended aid, yet it was still not enough.
After 2.5 years, and several hundred thousand HARP refi's, The Obama Administration has finally announced that it will be further expanding its program!
They will be removing the 125% Loan to Value cap from the program all together!
* MORTGAGE RATES December 4, 2013
30 yr fixed
15 yr fixed
WHAT THIS MEANS FOR YOU