What is HARP? It’s the Home Affordable Refinance Program. It lets you refinance your mortgage even if you owe more than the home is worth. Your current loan has to be owned (not serviced so don’t get that confused with owned) by Fannie or Freddie and it had to be originated before June of 2009. Clink on the link below to see all the mortgages in the State of Virginia that are still HARP eligible.
That’s just an amazing stat! over 18,000 loans in the state of Virginia that are still HARP eligible. And according to the web-site all these loans have a rate of at least 5.61%!
The government started a major campaign yesterday in Chicago to get the word out about HARP and encourage eligible borrowers to take advantage of the program. Although I applaud the idea, it is puzzling that the government hasn’t expanded the program to include more borrowers. One of the parameters is that your loan had to be originated prior to June of 2009. Another parameter is that you can use the program only once. Why? I don’t get the logic here. Expand the program to include all mortgages owned by Fannie or Freddie regardless of origination date. Also, make it so you can use the program as many times as you wish assuming it makes financial sense. I’ve been hoping that the government would make this change but it looks like it will not happen.
In any event, if you are eligible then take advantage!