HARP Loans: Are They Right for You?
November 01, 2012 at 8:13 am
You may be hearing more and more about HARP (Home Affordable Refinance Program) loans - and with good reason! HARP loans have become an increasingly promising refinance opportunity for borrowers with existing Fannie Mae or Freddie Mac mortgages who may have been previously unable to refinance into a lower payment.
HARP is intended to help homeowners by providing at least one of the following benefits:
- Reducing the monthly mortgage principal and interest payment
- Reducing the interest rate
- Reducing amortization terms
- Providing a more stable mortgage product (for example, moving from an adjustable-rate mortgage to a fixed-rate mortgage)
HARP applies to limited cash-out refinances only by paying off the existing first-lien mortgage, financing the closing costs, and providing no more than $250 cash to the borrower. This applies to 1-4 unit primary residences, second homes, and 1-4 unit investment properties. The properties may include condos, co-ops, manufactured homes, and planned unit developments (PUDs). Finally, the settlement date on your current mortgage must be on or before May 31, 2009.
In addition, in order to be considered for a HARP loan, your mortgage must be current and have
- No delinquencies in the most recent 6 month period;
- No more than one 30-day delinquency in months 7-12; and
- No 60-day delinquencies in the past 12 months.
Do you qualify?
Whether your current mortgage is with First Interstate Bank or another company, contact one of our experienced loan originators to find out!
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