HARP was modified over the years and eventually enabled homeowners to refinance up to 125 percent of the value of their homes without primary mortgage insurance. After being extended twice over the years, HARP expired on Dec. 31, 2018. "HARP had its purpose, and it worked, " says Frank Ruzicka, senior loan officer at Guild Mortgage in Chesterfield, Missouri. "But I don't see much demand anymore. There aren't many people coming in owning more than what their home is worth. " HARP replacement programs There was a slight decrease in the number of homeowners with negative equity as of the fourth quarter of 2020, with only 1. 5 million — or 2. 8 percent of all mortgaged properties — underwater, according to CoreLogic. This was a drop of 21 percent from a year ago and down significantly from the peak of 26 percent in 2009. 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: Fannie Mae's High LTV Refinance Option Freddie Mac's Enhanced Relief Refinance Both allow you to refinance if you owe more than 97 percent of your home's value on your mortgage.
Find Low HARP Rates Now For the first time in history lenders are offering no equity loan programs to people who need underwater mortgage refinancing. In the last five years, millions of homeowners have suffered from negative equity that has made refinancing impossible until now. Fannie Mae and Freddie Mac worked diligently to create a program to facilitate an upside down mortgage refinance for distressed homeowners that have been sabotaged by deteriorating market conditions. They announced the Home Affordable Refinance Program that is often referred to as "HARP. " Get a no cost quote on the Obama refinance program from one of our HARP lenders now. Preferred Loan Type: Property Value: Credit Rating: Property Type: If you have an "upside down mortgage" you may be eligible for the HARP loan, but your current lien must be owned by Fannie Mae or Freddie Mac. These government sponsored entities own about 90% of the home loans that have closed in the last 10 years, so there is a good chance you may be eligible.
HARP refinance loans are rate and term programs, designed for lowering monthly payments and interest rates for homeowners who do not have equity but want to take advantage of the low interest rates now available. Current mortgage rates are now at historic lows, so now is a great time to see if you qualify for a HARP loan or if there are good refinance options available for you. Call us today and talk to one of our trusted advisors and we will quickly give you the options and the answers that you are seeking. Refinance at an Affordable Rate HARP loans are a great option for you if you are underwater and you want to lower your monthly payment and your interest rate. Right now, you can take advantage of some of the Best mortgage refinance rates available in decades. If you owe more than your house is worth, you will not qualify for a conventional refi, but HARP may be a great solution for you. Refi rates are going up every day, so waiting to refinance could be a very costly delay. If your home is worth more than what you owe, you may want to convert your equity into cash and HARP may not be the best option for you.