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