HARP Extended… Again

Wednesday, 13 September 2017, 03:49:47 PM. MoneyTips The Home Affordable Refinance Program (HARP) was established in 2009 as a way to help struggling homeowners refinance in the aftermath of the housing crisis. Because of lower down payments and the sharp decline in home values, many homeowners were left with very high loan-to-value (LTV) ratios that left them ineligible for refinancing under Fannie Mae or Freddie Mac. HARP was
MoneyTips The Home Affordable Refinance Program (HARP) was established in 2009 as a way to help struggling homeowners refinance in the aftermath of the housing crisis. Because of lower down payments and the sharp decline in home values, many homeowners were left with very high loan-to-value (LTV) ratios that left them ineligible for refinancing under Fannie Mae or Freddie Mac. HARP was designed to give these homeowners relief from unsustainable terms. By refinancing, borrowers can take advantage of a lower interest rate to reduce their loan payments or shift out of a less-stable loan product into a relatively low fixed-rate loan. Since HARP's inception, over 3.4 million homeowners have taken advantage of HARP to refinance into a more manageable loan – and, in some cases, perhaps save their home. The Federal Housing Finance Agency, which oversees Fannie and Freddie, estimates that another 143,000 homeowners can still qualify to take advantage of HARP but have not done so. Interest rates have remained low enough that refinancing is still viable for many homeowners. As a result, the agency is extending the HARP program until December 31, 2018, to give homeowners one last chance to use this valuable program. The HARP deadline has been extended several times in the past. This (presumably) last extension allows the HARP program to provide a bridge to the FHFA's new High LTV Streamlined Refinance Programs that will replace HARP loans in 2018 (Freddie Mac's Enhanced Relief...Read more
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