Help For Underwater Homeowners
The federal government announced on October 24, 2011 that there is help for homeowners who want to refinance their current mortgage and take advantage of the low interest rates using the HARP program.
The HARP program is not new, it has been around since 2009. What is new are the changes to the guidelines. These new changes will help more homeowners to lower their monthly mortgage payment.
The biggest changes are:
- Removing the 125% LTV (loan to value) ceiling
- Eliminating the need for a new appraisal
- Waiving certain representations and warranties that lenders commit to in making loans
- You do not need to use your current lender
To refinance under the HARP program you need the following:
- Your current mortgage needs to be a FannieMae or Freddie Mac backed mortgage
- You need to be employed and have the income to support the new payment
- You need to be current on your exsiting mortgage payment