| iv> | | | | private lenders has become very difficult or |
| Troubled homeowners can take advantage of HARP. | | | | impossible. This is where the Home Affordable |
| This is a government program that will enable you | | | | Refinance Program comes in. |
| to get affordable refinancing. You should apply now | | | | You can also benefit from HARP even if you are not |
| because it will end in a couple of months. The Home | | | | facing an imminent increase in mortgage interest |
| Affordable Refinance Program or HARP will end on | | | | rates. But you have to remember that adjustable |
| June 10, 2010. This program is part of the | | | | rate mortgage is designed to reset to a higher rate. |
| government’s initiative called Making Home | | | | On the other hand, if you took the interest-only |
| Affordable. This is designed to prevent foreclosure | | | | payment option, you will eventually be required to |
| by allowing homeowners to get the needed | | | | begin paying the principal. |
| refinancing for their mortgage. With this program, you | | | | If you can not refinance the mortgage, you will be |
| can refinance your mortgage at up to 125 percent of | | | | faced with the prospect of increasing interest rates |
| your home’s current value. | | | | and monthly payments. If you have become |
| Obviously, this initiative was created to assist | | | | underwater’, the HARP program could be |
| troubled homeowners whose homes have lost value. | | | | your only practical option of getting an affordable |
| The program will give you access to more | | | | refinancing. |
| affordable mortgage refinance loans. It may seem | | | | Some Points to Consider Before You Apply |
| that June 10 is still a long way off. However, you | | | | To qualify for HARP, you can not owe more than |
| have to remember that red tape, negotiations, and | | | | 125 percent of your current home value on the |
| growing demand could cause delays in the approval | | | | primary mortgage. But you have to take note that |
| of applications. Because of these, you have to act | | | | you can still qualify even if the second mortgage or |
| fast and apply now so you can take advantage of | | | | home equity loans exceed 125 percent. However, |
| this program. | | | | the holder of the second mortgage and home equity |
| Who Will Benefit From HARP | | | | loan must agree to remain in the junior position when |
| If your home has become underwater’ | | | | you refinance. |
| and you have an adjustable rate mortgage that will | | | | You can also qualify for the program even if you are |
| reset to a higher rate, then HARP is a potential | | | | not having financial difficulties. Some participating |
| lifesaver. This program will also benefit homeowners | | | | lenders will still consider your application. It is also |
| who have other types of mortgage with monthly | | | | not necessary to refinance with your current lender. |
| payments that are scheduled to increase. | | | | You can use any participating lender approved by |
| Usually, the logical thing that you can do is to | | | | Fannie Mae and Freddie Mac. |
| refinance before the rates increase. Unfortunately, | | | | HARP can be a real lifesaver. But you have to act |
| due to the steep decline in the home values, | | | | quickly by applying today. That is because the |
| qualifying for a mortgage refinance offered by | | | | program will end in a few months. |