Archive for April 13th, 2011

HARP Extension to Assist Homeowners

The home refinance option of the Home Affordable Refinance Program (HARP) has been given an extension until June 30, 2012. The purpose of the program is to provide homeowners the refinancing assistance that they need because they cannot do it the traditional way. The reason for this is that the value of their homes depreciated because of the global economic crisis that led to the credit crunch. Homeowners are highly advised to seek the help of housing counselor experts to obtain more successful results.

The Home Affordable Refinance Program was created after the crash in the market in 2008. Its purpose was to help the home owners who were lucky to keep a good payment history and get more stable rates of mortgage even if the value of their primary residence decreased sharply.

The HARP loan does not require so much. This is open to homeowners who have an existing mortgage that is insured by Fannie Mae or Freddie Mac. Also, the borrower must have a good track record of paying his or her mortgage diligently and without default for more than 30 days. This good payment history must have been maintained for the last 12 months. In addition, the refinancing loan can still be obtained by the borrowers despite a lower value of their houses against their existing loan in the current market.

But, the limit of the mortgage value is set to stay below 125% of the current price in the market. In order to acquire the loan, the last condition is that the borrower must show proof of his or her capacity to afford the new payments. The loan must also demonstrate that it can give better stability to the mortgage borrower.

Interested homeowners are requested to consult a highly experienced mortgage lender to help them in the process. Research shows that a mortgage professional can greatly contribute to a better outcome that is in favor of the borrower because of its lower cost, lower terms and more savings.