Homeowners are using the HARP loans less frequently these days. Despite the lowest mortgage rates in 14 months and simpler loan guidelines, there are more than 667,000 households eligible for the Home Affordable Refinance Program which have yet to use their eligibility.
The typical refinancing household saves more than 30% monthly and HARP expires at the end of next year. It's a terrific time to look at your HARP loan eligibility.
HARP 2 (REMOVING 125% LTV RESTRICTIONS)
There were two main changes in HARP's second release :
- New mortgage lenders were indemnified from errors of the original lender
- All loan-to-value restrictions were removed; 125% LTV was no longer a limit
The changes to HARP gave homeowners access to unlimited LTV loans, plus every HARP-participating lender. HARP volume tripled in the next 12 months and, today, more than 3 million HARP loans have closed in total.
In HARP 2's first month, loans with LTVs over 125 percent accounted for more than 40% of all HARP loans closed. This proved to be a peak and an anomaly; the result of pent-up demand and a rush to use HARP 2.
As home values have climbed nationwide (as much as 25% in some markets) the need for ultra-high LTV HARP loans over 125% is less.
Rising home values are diminishing the need for high-LTV HARP refinance, a trend which is expected to continue through the Home Affordable Refinance Program's expiration next year.
HARP concludes December 31, 2015. There are no plans to extend it.
HARP mortgage rates are at a 14-month low and the program is slated to expire at the end of next year. You may be one of the hundreds of thousands of homeowners currently HARP-eligible. It's a terrific time to see what you can save.
News via Dan Green/TheMortgageReports.com
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