| Refinancing a mortgage can have several benefits to | | | | mortgages to be eligible for HARP, which means that |
| homeowners, such as lowering their interest rate to | | | | they cannot have been more than 30 days late on |
| save money over the life of the loan. But, due to the | | | | any mortgage payments over the last year. If a |
| current housing crisis, many homeowners have | | | | homeowner has more than one mortgage, only the |
| experienced a reduction in the value of their homes, | | | | first mortgage can be refinanced. |
| which has prevented them from refinancing with a | | | | How an FHA Loan Modification Can Improve Your |
| conventional home loan. The Home Affordable | | | | Life |
| Refinance Program, which is part of the Home | | | | With the high number of mortgage delinquencies and |
| Affordable Modification Program, can be a solution for | | | | foreclosures, it is especially important for a |
| those homeowners who currently have mortgages | | | | homeowners to get help before they get too deep |
| through Fannie Mae or Freddie Mac. | | | | into financial trouble. If a homeowner has always |
| HARP Extension Allows More Homeowners to | | | | been current on his or her mortgage payments, but |
| Refinance Their Mortgages | | | | foresees having trouble keeping up with upcoming |
| HARP, which was scheduled to end in June of this | | | | mortgage payments, due to an increased interest |
| year, has been extended to June 2011, giving more | | | | rate or other factors, refinancing into a lower, fixed |
| homeowners the opportunity to take advantage of | | | | rate can prevent the risk of delinquency or |
| the program. HARP allows homeowners who are | | | | foreclosure down the road. Compared to other type |
| ineligible for traditional mortgage refinances to | | | | of home loans, FHA loans offer low rates that can |
| refinance their current mortgages into a more | | | | save homeowners thousands of dollars over the life |
| affordable FHA loan. In 2009, about 190,000 | | | | of their loan. Also, these loans are a great option for |
| homeowners were able to take advantage of an | | | | homeowners who may not qualify for other types of |
| FHA loan modification to receive a lower interest rate | | | | financing due to credit issues or low home values. |
| on their mortgage. With the new FHA loan, | | | | Homeowners who would like to take advantage of |
| homeowners can receive a lower, fixed interest rate, | | | | the FHA loan modification program should first |
| which will most likely lower their monthly mortgage | | | | determine their eligibility for the program, which can |
| payment. The homeowner can then save money | | | | be done on the Department of Housing and Urban |
| each month and over time without having to worry | | | | Development's website or with an FHA mortgage |
| about their rate changing. | | | | lender, who can also help homeowners apply for the |
| HARP Requirements | | | | program. HARP is a great way for homeowners to |
| Through the FHA loan modification program, | | | | lower their monthly mortgage payments in order to |
| homeowners can refinance up to 125% of their | | | | have peace of mind and more money for other |
| home's market value. So, even homeowners with | | | | expenses. With rates at historical lows, now is a |
| underwater mortgages, meaning that they owe more | | | | great time to take advantage of the FHA loan |
| on their mortgage than their home is worth, can | | | | modification program! |
| qualify. Homeowners must also be current on their | | | | |