A recent survey by Fannie Mae and Freddie Mac showed that only about 30% of eligible borrowers have refinanced using the HARP financing ability. HARP is not a complaint but it is the Home Affordable Refinance Program. This program has now been out for a few years and has had some over hauls to it as well. It was set up and designed for borrowers to refinance that would not be able to under normal circumstances.
With all of the situations due to the economy, especially home value changes, HARP has become a great option for many. But yet there are many that can still utilize it.
A common situation is that home values have decreased and in some cases even to a negative situation. This is where HARP comes in to play as it allows negative equity in the home. The one catch on this is that you can only refinance your primary mortgage and not your second mortgage or equity line. Once a loan is refinanced it is suggested to speak to the holder of the second lien to try and renegotiate the terms as well.
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Of course the main thing is that your loan needs to be a conventional loan backed by Fannie Mae or Freddie Mac. To find out if your loan is backed by either of these entities or to find out if it makes sense to refinance, feel free to contact me at 612.386.7672 or tom.smith@amecinc.org.
Why waste money if you can save money....and it costs nothing to find out if it is possible.
