Refinance to a lower interest rate, even if you are infinitely underwater on your mortgage. As long as the homeowner has continued to make the payment on time, this is part of the newly enhanced Home Affordable Refinance Program. The previous guidelines limited loan amounts on HARP refinances to 125% of the current appraised value. Removing that guideline opens the door to many homeowners that owe significantly more than their property is worth.
Here are some important points about the program:
- Mortgage must currently be owned by Fannie Mae or Freddie Mac
- Mortgages must have been acquired by Fannie or Freddie prior to May 31, 2009
- Fannie & Freddie roll out the new guidelines on December 1, but it will take lenders a couple of months to implement the program.
- Program ends December 31, 2013.
Please contact me directly with questions related to refinancing under HARP. cmozilo@homeownersfg.com
A home mortgage will have either a fixed or floating interest rate; this will be paid monthly along with a contribution to the principal loan amount.
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