The Federal Housing Finance Agency (FHFA) released yesterday that The Home Affordable Refinance Program (HARP) has been extended for two more years, December 31, 2015. The program was set to expire on December 31, 2013. “More than 2 million homeowners have refinanced through HARP, proving is a useful tool for reducing risk”, said FHFA Acting Director Edward J. DeMarco. “We are extending the program so more underwater borrowers can benefit from lower interest rates.”
What does this mean?
This means that for those of you that have a mortgage that is serviced with either Freddie Mac or Fannie Mae and the value of your home has declined, leaving you owing more than what your home is worth, this refinance program gives you the opportunity to take advantage of the low rates and refinance.
Many think because they may have no or little equity in their home that they are unable to refinance, this program makes it possible. The goal of this refinance program is “to provide access to low-cost refinancing for responsible homeowners suffering from the falling home prices.” As stated by the President.
Make sure to read more about the HARP program and see if you are eligible. Please also see if your mortgage is serviced by Fannie Mae or Freddie Mac.
If you have any questions please don’t hesitate to contact us. We are always here to help.