Homeowners have a tough choice when asked to chose between a home mortgage responsibility
and an investment opportunity. The scales always favour towards being regular
with a mortgage. This can be an unsatisfactory acquiescence, when a little
extra amount could go a long way in building a strong cash balance or saving
for a valuable investment. At present the good news is that, homeowners actually
have the opportunity of being a little less tough on oneself. Refinancing
through the new home affordable refinance program, to take advantage of
prevailing low rates, is a way out of such predicaments.
The
U.S administration expects homeowners to not only hold on to their homes, but
also to benefit financially from the various programs that have been put in
place in lieu of the housing crisis. The new home affordable refinance program(HARP
2.0) is one such program which serves the purpose of providing refinance
solutions to homeowners who are stuck with expensive or underwater mortgages.
It helps homeowners to secure a new, more affordable and more safe mortgage.
The availability of this plan has now been extended till December 2015.
Earlier, the plan was meant to be effective till 2013. There are many benefits
to saving a sizeable amount, every month, through lowered mortgage payments. Homeowner
affordable refinance program would have remained just a dream without HARP, a
module of Making Home Available(MHA) program. Lenders weren’t keen to refinance
on underwater mortgages before the arrival of this program.
Some
eligibility criteria to qualify for HARP refinancing are mentioned below for
your convenience.
The
Ratio of the current loan amount to the value of your home (LTV ratio) should
be greater than 80%.
Your
mortgage should be owned or guaranteed by Freddie Mac or Fannie Mae.
Your
mortgage should have been sold to Fannie Mae or Freddie Mac on or before May
31, 2009.
Your
mortgage should not have been refinanced under HARP previously, unless it is a
Fannie Mae loan that was refinanced under HARP from March-May, 2009.
You
must be regular on mortgage payments, at the time of the refinance, and should
be able to show a good payment history of past 12 months
You
should also be aware that to refinance under HARP 2.0 Program, a loan
application and underwriting process is required. Also remember that refinance
fees will apply, for the same.
However,
to take advantage of prevailing low interest rates on mortgage through the
means of homeowner affordable refinance program, one should first qualify for
the refinance. For this, home owners may take help from experts available on
some leading websites like www.mortgage-refinanceprograms.com.
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