What are the signs you need Home Affordable Refinance Program (HARP) refinancing? What do you mean the HARP still exists, you ask? Wasn’t it supposed to expire in 2016, or thereabouts?
Yes, it exists, and, yes, it was to expire then. But it proved so beneficial the government extended it. So let’s get back to answering the question, now that you are clearly interested.
Here are signs you can use HARP refinancing.
You Have a Second Mortgage
You want to refinance your first mortgage, but wonder whether it’s possible, knowing you have a second one. Wonder no more: Yes, it’s possible, but there’s a catch.
So long as you don’t combine both mortgages, the second mortgage lender will approve the refinancing.
You Have no Equity or Your Application was Turned Down
Living in the one of the areas hardest hit by the housing crisis, you are so far underwater you laugh at the very thought of refinancing.
You will laugh some more when you understand HARP’s sole mission – to help underwater homeowners such as you. So, yes, you are eligible for refinancing even without equity.
But if HARP helps struggling homeowners, why, then, do lenders reject your HARP application? They do so when you fail to meet the guidelines they add to the government’s HARP guidelines.
Known as investor overlays, these added rules differ from lender-to-lender. So keep applying to different lenders until one approves your application.
The Home is Not Your Primary Residence
That HARP refinancing doesn’t apply to anything but your primary residence is a myth. In fact, you can refinance any type of home, including second homes, vacation houses, and investment properties. Better yet, you can do so in any US state or territory.
Your Lender doesn’t Offer Harp Refinancing and You’re not Behind on Your Payments
Do all lenders offer HARP loans? No, they don’t. Where does that leave you if you want to refinance, yet your mortgage lender doesn’t offer such loans?
It still leaves you free to refinance with any who does, especially if you have not fallen behind or defaulted on your payments. If you haven’t, try as you may, HARP will not save you from a foreclosure.
You Have Private Mortgage Insurance
In its early years, HARP did not apply to loans with private mortgage insurance as it does today.
Instead, you had to have borrower-paid or lender-paid mortgage insurance. That said, finding a lender offering private mortgage insurance is still difficult today. You must go through many lenders before finding the right one.
You Want Less Documentation or to Waive the Appraisal
Tons of paperwork, and long delays plague the process of getting a traditional loan, leading to frustration. In contrast, HARP loans need less documentation and approval-time.
In addition, since 2011, the lender can waive you’re the appraisal if you qualify for it. Instead of you paying for the appraisal, the lender estimates the value of your house based on recent home sales in your neighborhood.
You Consider HARP Too Good to Be True
Despite the program’s benefits, most people stay away thinking it too good to be true. Well, it is. So apply for refinancing, and enjoy no mortgage insurance, lower monthly payments, and lower interest rates.
The following signs indicate you need HARP refinancing. You have a second mortgage, no equity, or a rejected HARP application.
Also, want to refinance a second home, your lender doesn’t offer HARP refinancing, and you’re not behind on your payments.
Furthermore, you could have private mortgage insurance, or you just want less documentation or an appraisal waiver. Finally, may be you think the program too good to be true, yet you haven’t tried it.