As Home Sales Slow, Refinancing Merits Another Look

As we have mentioned, this tends to be a relatively slow period for new real estate listings as people focus on the holidays.

However, if you already have a house and need to refinance at a lower interest rate, you might find this new government program worth investigating.

The Home Affordable Refinance Program (HARP) is designed to lower interest rates on existing home loans, even if they are a bit under water.  

You may be able to apply for a Home Affordable Refinance Program (HARP) loan if you meet all of the following criteria:

• You have a mortgage owned or guaranteed by Fannie Mae or Freddie Mac.
• You do not have an FHA, VA or USDA loan.
• You are current on your mortgage payments and have not been more than 30 days late making a payment over the last year.
• Have a first mortgage not exceeding 125 percent of the current market value of your home.
• The refinance will improve the long-term affordability or stability of your mortgage.
• You have the ability to make the new payments.

Visit the HARP website (http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx) for basic information and links to Fannie Mae and Freddie Mac to see if your loan qualifies.  Then check with whoever services your loan or your loan broker to get the appropriate details.

Be careful, though, as loan refinance fees will apply.

Happy Thanksgiving next week.