Mortgage and HARP: What You Need to Know

When monthly mortgage payments have become burdensome, and yet somehow, you are still able to cope, then it would be best to opt for refinancing through HARP. This will help ease the burden off your shoulders.

Meet HARP

This refers to the Home Affordable Refinance Program. This was set up by the federal government to help homeowners get out of the quagmire of a mortgage. Those owners who are already underwater or near it would be able to refinance their mortgages. When you owe so much more than what your home is actually worth, you can opt for a HARP home loan.

HARP Benefits

The benefits of HARP are quite apparent. When you opt for HARP, you will enjoy significant savings since this will help in lowering your monthly payment. It would also be reducing your interest rates. The savings you incur, you can use to purchase other needs of the family. HARP would also help in securing a fixed-rate mortgage. You can expect your interest rate not to change over time. Also, you would be able to build equity much faster.

HARP Qualifications

Now the benefits of HARP home loans certainly look and feel lovely. You must be wondering now how you can become qualified for such a home loan. Your loan must have closed before May 31, 2009, or on that exact day itself. Obviously, before you can afford this kind of loan, you must be able to prove that you were diligent enough in keeping up with monthly payments of your existing mortgage. When you meet all of these, you can now seek the help of a lender to avail of the loan. A HARP home loan will be one of your best options if you want to take the huge load off your shoulders. Yes, it will not extinguish your mortgage, but it will give you lighter terms that will help you in paying off your mortgage. So opt for this type of loan now.