The Home Affordable Refinance Program (HARP 2)

If you are a homeowner with an underwater mortgage, the Home Affordable Refinance Program 2 (HARP 2) can help. If your home mortgage is secured by Fannie Mae or Freddie Mac, you may be able to refinance your home loan into lower monthly payments at today’s low interest rates.

Revamped in 2011, HARP 2.0 is a government program designed to help millions of underwater homeowners refinance into a fixed loan with a lower payment.  On Oct. 24, 2011, The President announced a revamp to the HARP program with the intention of helping more underwater homeowners. The expanded HARP program – also referred to as HARP 2.0 – started on December 1, 2011 for borrowers with a loan-to-value ratio of less than 125 percent and was expanded in the first quarter of 2012 for borrowers with a loan-to-value ratio of greater than 125 percent.

To qualify for a HARP 2 refinance, you need to meet a few requirements.  According to makinghomeaffordable.gov the requirements are you must be current on your mortgage and not have missed a payment in the last 6 months. Additionally, you cannot have more than 1 late payment in the last 12 months. Fannie Mae or Freddie Mac must own your current mortgage and it had to have been acquired on or before May 31st 2009.

If you do qualify for a HARP 2 refinance and your currently not paying private mortgage insurance (PMI) you will not be required to get it. If you are currently paying private mortgage insurance you can still take advantage of this program and the new lender will just transfer your current mortgage insurance without it increasing. Some great perks to this program is:

  • There are no closing cost options
  • Most lenders allow Unlimited Loan To Value
  • We can also roll additional money related to your new mortgage into your new loan.
  • We are able to acquire an appraisal waiver on most loans so you don’t have to worry about your current homes value.

The Home Affordable Refinance Program 2 (HARP 2) can save you hundreds of dollars monthly and thousands over the life of the loan. It is important to know that the closing date to get a HARP refinance currently ends on Dec. 31, 2013.  If you want the information to help you get the very best HARP 2 loan in the state of Minnesota; I encourage you to fill out the contact form on the right side of the page. I will help you get the best mortgage rate with the lowest closing costs possible. If you prefer you may call me at my work number (763)-400-7537 or my mobile number (952)-807-8532.