The federal Home Affordable Refinance Program, also known as HARP, has been around since 2009. It was designed to help homeowners who are underwater on their home mortgages to refinance if their mortgages were backed by Fannie Mae or Freddie Mac. However, the new loans could only be 125 percent or less than the current value of the home. A recent update to the program removed the loan-to-value restriction, making it more available to Southern Nevada residents. HARP had previously been expanded to include investor owned properties.
In the State of Union address, President Obama outlined a program for homeowners who are current on their underwater mortgages which would allow them to modify their current loans to a lower interest rate.
“I’m sending this Congress a plan that gives every responsible home owner the chance to save about $3,000 a year on their mortgage by refinancing at historically low rates.” No more red tape. No more runaround from the banks, ” to quote the president.
The HARP program would also be expanded to include mortgages not guaranteed by Fannie or Freddie. The program would be funded through fees on the major banks.
If you would like more information on these programs, contact us through LasVegasHomeSpecialist.