Are You Leaving Money On The Table?

According to a recent article in Fortune Magazine, 75% of American homeowners who are eligible for refinancing their underwater homes are not doing it. As a result, they are missing the opportunity of getting today’s historic low rates.

The HARP (Home Affordable Refinance Program) was enacted to help underwater homeowners get access to the same low rates that everyone else have – even if they had negative equity in their home. Every new version of HARP program  has made it easier for eligible homeowners.

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The biggest roadblock? Consumer uncertainty. The housing bubble that burst, the bad loans, and the bad press has made homeowners balk at getting involved with refinancing again. So millions of eligible homeowners are missing out on getting low interest rates and saving money on their monthly payments.

What are the eligibility criteria for HARP?

• Your loan must be backed by Freddie Mac or Fannie Mae
• Freddie or Fannie needs to have bought your mortgage prior to June 1, 2009
• Borrowers must be current on their mortgages for the last six months, and have no more than one late payment over the past year
• The mortgage cannot have been already refinanced through HARP in the past, unless it happens to be a Fannie Mae loan that underwent a HARP refinance between March and May 2009
• The mortgage cannot  be a USDA, FHA, or Jumbo Mortgage
• If the California Homeowner refinances into a fixed rate mortgage, no Loan to Value (LTV) limit applies. However, if the new loan is an adjustable rate mortgages, the borrower’s LTV cannot exceed 105%.

These guidelines can be confusing.  We can help you figure it out and find out if you are eligible to refinance your underwater home.

The HARP program ends on December 31^st, 2013, so time is definitely of the essence if you want to lower your payments.

For an overview of the HARP program, visit our site harprefinancetips.com.  You can check your eligibility or start the application process online.  Still a little uncertain? You can also call us at (707) 763-6290 or (800) 619-4400 – we’ll be delighted to talk to you.