The HARP program has been around since 2009. While it has reached around one million households in the US, surveys show that a majority of homeowners are still unaware of how the HARP program works and how they could benefit from it.
Fortunately, the Federal Housing Finance Agency extended the HARP loan until September 2017. Primary Residential Mortgage, Inc., a top mortgage firm in the US, believes it is a chance to educate borrowers about the benefits of the HARP home loan. In what ways can they take advantage of the loan extension?
Refinance without Home Equity
The HARP loan functions to give homeowners financial relief to those struggling with their current mortgage. The loan program helps borrowers stay afloat by offering low-interest rates, closing costs, and a chance to build home equity more quickly.
Since 2009, homeowners have used the HARP loan for over 3 million refinances in the US alone, and it helps borrowers save up to $3,500 every year.
A Chance to Apply again for Rejected Loan Borrowers
The HARP loan extension is a chance for rejected borrowers to apply for the loan once more. The program has improved since the government first developed the loan in 2009, with more flexible guidelines and fewer requirements.
Homeowners are eligible to apply for another HARP loan as long as they meet the following requirements: borrowers took out the mortgages before May 31, 2009, and Fannie Mae and Freddie Mac backed up the loans.
A Loan for Mortgages with Private Mortgage Insurance
The HARP program allows homeowners to refinance loans with private mortgage insurance (PMI), and it applies to both borrower and lender insurance. The amount of PMI coverage, however, should almost be the same to protect lenders from the same amount of loss.
2017 is a great time for homeowners to apply for a HARP loan refinance. After all, the loan gives borrowers financial freedom without any down payment requirements at adjustable terms and rates.