The H.A.R.P., Home Affordability Refinance Program, program offered to Fannie Mae or Freddie Mac mortgage note owners to refinance at today’s lower rates. So simply yes the program works. The program allows for home owners to refinance regardless to your loan to value. The catch is your mortgage most be owned by Fannie Mae or Freddie Mac before May 31, 2009. So who owns your mortgage note?
Most people do not relies that the bank they are paying their current monthly mortgage bill to does not own their mortgage note. Most of the time the bank you make your monthly payment to is acting as a “Servicer” for that actual mortgage note holder. You can do a web search for does Fannie Mae or does Freddie Mac own my loan and follow the steps. If you have a loan match before May 31, 2009 then you are eligible for the program.
Here is the tricky part, you have to find the right Lender to meet your needs. May people get discouraged because they get told their bank cannot do their loan. Well this is correct more times than not. The reason is because not all mortgage lenders offer the program as it is intended. Banks, Brokers or Mortgage Bankers offer programs with what they feel is safe to them. This is very complex but if you think of banks as car deals this makes more sense. For example you would not take your Chevy to the Toyota dealer to get fixed. Yes the people at the Toyota Dealer could get the job done in most cases but not efficiently. So your cost would be much higher than if you just took your car to the Chevy dealer to begin with. The average person simplifies the mortgage process and yes the banks take advantage of this lack of knowledge. Was anyone surprised that Wells Fargo posted huge profits as few months ago? All of the big banks are doing very well in a down economy, imagine that.
So what is the HARP program? The HARP program is a refinance opportunity that allow you to refinance your current loan to a new 30 year fixed mortgage. HARP is not a loan modification. The program does not require you to be late on your mortgage payment and it does not damage your credit score. Frankly if rewards those people that are keeping up with their mortgage payments.
There is only one company that I am aware of that offer the HARP program regardless to your loan to value. It is MN Capital and you can visit them on line at www.mn-capital.com
The HARP program is currently scheduled in terminate on Dec. of 2013. If you are still considering taking advantage of the HARP program then you might want to get moving before the program is over. With the rising real estate values there is little reason for Congress to extend the current HARP program or roll out the rumored HARP 3 program.