Here’s one great reason to modify your mortgage, especially if you struggle to make monthly payments. The Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to extend the Home Affordable Refinance Program (HARP) for two years to December 31, 2015.
HARP was set up by the Obama Administration specifically to help homeowners in trouble. The program works with homeowners who are “underwater.” In other words, those who owe more than their homes are worth.
FHFA Acting Director Edward J. DeMarco says,“More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk. We are extending the program so more underwater borrowers can benefit from lower interest rates.”
- The loan must be owned or guaranteed by Fannie Mae or Freddie Mac.
- The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
- The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
- The current loan-to-value (LTV) ratio must be greater than 80 percent.
- The borrower must be current on their mortgage payments with no late payments in the last six months and no more than one late payment in the last 12 months
Find out if you qualify:
Contact your existing lender or any other mortgage lender offering HARP refinancing. Check to see if your loan is owned by Fannie Mae or Freddie Mac.