The HARP mortgage was introduced in 2009 to allow homeowners to refinance their current mortgage if they owed more than their home was worth. HARP stands for the Home Affordable Refinance Program but it is often referred to as the Obama Refi, and Making Home Affordable program. While they are essentially the same programs, both Fannie Mae and Freddie Mac have their own version of the HARP mortgage. Fannie Mae’s version is called DU Refi Plus, and the Freddie Mac variation is called the Relief Refinance. The program you end up using will depend on which of these entities owns your mortgage.
All American Home Mortgage is a local Henderson mortgage company dedicated to helping homeowners throughout Nevada save money on their mortgage through the HARP mortgage. The original HARP allowed borrowers to finance up to 125% loan-to-value (LTV) only. Many homeowners were unable to take advantage of the program as home values had decreased so dramatically. HARP 2.0, released in 2012, removed the LTV cap for fixed rate mortgages. This made HARP accessible to millions of additional homeowners. HARP 2.0 is set to end on September 30, 2017.
Qualifying for HARP 2.0 in Henderson
Henderson homeowners will need to meet a few requirements before they can qualify for the HARP 2.0 program.
- The loan must be owned by Fannie Mae or Freddie Mac.
- The loan must have a note date no later than May 31, 2009.
- The current LTV must be 80% or higher.
- The borrower cannot have any 30-day late payments in the past 6 months.
- The borrower cannot have more than one 30-day late payment in the past 12 months.
- The mortgage being refinanced has not previously used the HARP program.
HARP 2.0 loans are available as 15-year, 20-year, and 30-year fixed-rate mortgages, or 5, 7, and 10 year adjustable-rate mortgages (ARM). Those with a current ARM can refinance into another ARM or a fixed-rate mortgage. Homeowners with fixed-rate mortgage will only have the option to refinance into another fixed-rate mortgage.
One advantage of the HARP 2.0 program is that you do not need to pay private mortgage insurance (PMI) when refinancing, even if the LTV exceeds 80%. Most home loans require PMI when the LTV is greater than 80%. This applies to homeowners who are not paying PMI on their mortgage at the time of refinancing. If you are currently paying PMI, you will need to continue doing so. HARP 2.0 does not allow you to refinance out of your PMI.
HARP 2.0 program can be an excellent refinancing option for Henderson homeowners who are underwater in their current homes. HARP 2.0 will end on September 30, 2017. If you have been considering refinancing your mortgage, contact All American Home Mortgage, your premiere Henderson mortgage lender, to take advantage of the program before it is too late.