For example, if your loan is owned by Fannie Mae or Freddie Mac and your loan was originated after Oct. It looks like your browser does not have JavaScript enabled. Please turn on JavaScript and try again. Twitter Youtube LinkedIn Facebook. Contact Us Mobile. Want to Subscribe? Mortgage Translations. Duty to Serve Program. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions such as approval for coverage, premiums, commissions and fees and policy obligations are the sole responsibility of the underwriting insurer.
The information on this site does not modify any insurance policy terms in any way. For nearly 10 years, the Home Affordable Refinance Program HARP helped underwater homeowners refinance to lower rates, save money and build equity in their homes. Although HARP ended in , two federally-backed initiatives for high loan-to-value LTV ratio mortgages currently offer homeowners similar benefits with a few changes.
When real estate values fall, homeowners with little equity in their homes can find themselves underwater — owing more on the mortgage than what the home is worth. HARP was created in to give borrowers who were current on their mortgages but had little or negative equity an opportunity to refinance at lower rates. HARP was modified over the years and eventually enabled homeowners to refinance up to percent of the value of their homes without primary mortgage insurance.
There was a slight decrease in the number of homeowners with negative equity as of the fourth quarter of , with only 1. This was a drop of 21 percent from a year ago and down significantly from the peak of 26 percent in Of these loans still underwater, many were likely modified or refinanced through HARP, and are working their way into positive territory. Today, two federal programs offer a permanent refinance solution for homeowners who are underwater with their mortgages:.
They are essentially an extension of HARP, but with different names and slightly different requirements. They offer benefits including reduced monthly payments, lower interest rates, shorter loan terms and the ability to convert an adjustable rate to a fixed-rate mortgage.
To be eligible for these HARP replacement programs, you must have:. There are several key differences between HARP and its replacements. Fannie Mae and Freddie Mac require underwater loans to be at least 15 months old before they can be refinanced. Both programs require a minimum LTV ratio of You can also contact Fannie Mae or Freddie Mac directly:. Lowering your interest rate and monthly payments not only saves you money, but also enables you to build equity faster. How We Make Money.
Written by Craig Guillot. Written by. And, you can use it to refinance a home with one, two, three, or four units. Fannie Mae also requires a minimum LTV ratio of You can have a minimum LTV as low as If your loan application can be underwritten electronically as in most cases , you may be eligible for an appraisal waiver. Otherwise, an appraisal with an interior and exterior inspection is required. If an appraisal is obtained, it must be used for valuation even if a waiver is offered by DU.
These programs are available from mortgage lenders nationwide. But these measures only provide temporary payment relief. However, mortgage lenders are allowed to impose their own credit minimums. Mortgage rates are still at historic lows, and refinancing can help borrowers lock in a lower rate and monthly payment for the long run.
Verify your new rate Nov 12th, How Soon Can I Refinance?
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