HARP 2.0 refinance: What you need to know. HARP 3.0 Mortgage Refinance . HARP 3.0, if passed, will open up the market to millions of borrowers. Under the Home Affordable Refinance Program (HARP). HARP 2.0 or the Home Affordable Refinance Program is the federal government's plan to help more borrowers who can benefit by reducing their mortgage. Home Affordable Refinance Program at American Financial Network. What HARP 2. 0 can - - and can't - - do for you(Money. Watch) Many of the people who contact me after reading my column or listening to my radio show have the same problem: They want to take advantage of low interest rates to refinance their mortgages, but their banks won't do it because the value of their home is now less than what is owed on the loan. While we've all heard about people who bought homes during the housing boom that they couldn't afford and who are facing foreclosure. But even responsible consumers who bought homes well within their means and can still afford their payments are in trouble these days. Stuck with homes worth far less than they fork out every month on the mortgage, such borrowers are essentially throwing money away. To help responsible borrowers in this boat, the Obama administration rolled out the Home Affordable Refinance Program in 2. Making Home Affordable program. The first program fell short of its goals, so the government made some changes and rolled out HARP 2. That seems to have boosted participation in the program. Twenty percent of all U. S. HARP 2. 0 is a program that allows homeowners who are . In particular, it's geared toward people who can't find assistance elsewhere. There are two key changes between the first and second versions of the program. First, unlike its predecessor, HARP 2. This opens up the program to an entirely new - - and much larger - - pool of borrowers. Perhaps most important, the new originator is relieved of responsibility for anything that happened on the first loan. This means lenders are more willing to help.? According to Making. Home. Affordable. Be owned or guaranteed by Freddie Mac or Fannie Mae. Have been sold to Fannie Mae or Freddie Mac on or before May 3. Not have been previously refinanced under HARP, unless it is a Fannie Mae loan that was refinanced under HARP between March and May of 2. The current loan- to- value ratio on a mortgage also must be greater than 8. On its site, Making. Home. Affordable points out that these criteria are for guidance only and that interested borrowers should call their mortgage servicers to find out if they qualify. Glick said that borrowers interested in using HARP 2. In other words, homeowners must be able to prove income and assets in order to qualify for the reduced payment. Find a mortgage broker who knows the ins and outs of your particular loan when trying to refinance under HARP 2. Any mortgage originator can issue a HARP loan, so it's not necessary for borrowers to go back to their original lender. That said, just because any lender can participate doesn't mean all of them do. Call around to find lenders who are offering refinancing under HARP. Who should I contact? Since you're not required to go to your original lender to obtain a refi under HARP 2. Shop around so you understand what kinds of programs lenderes are offering. If you want to make it easier, Glick suggests finding a mortgage broker who is familiar with your particular situation. Also make sure to interview more than one to find the right fit. Glick said you'll know you've found a good broker when the person starts asking lots of questions about your loan. So if a broker doesn't know enough to understand the questions she needs to ask, it's time to move on. Understand that because you're going into a HARP refinance, you won't get the kind of interest rates you're hearing about, like 3. HARP loan rates this month are generally over 4 percent. If you feel that you were wrongly foreclosed on or received a foreclosure notice in error, go to Independent.
Foreclosure. Review. If you're a homeowner and have questions about whether you qualify for a loan modification or refinancing under HARP 2. Homeowner's HOPE hotline at 1- 8. HOPE or go to Making. Home. Affordable.
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