Rep. Smith is spreading the word that last month a new version of HARP (Home Affordable Refinance Program) took effect. HARP is for homeowners who have previously been unable to refinance their high interest rate mortgages because of a lack of equity (or negative equity). HARP is part of the federal Making Home Affordable Program.
HARP may make sense if you:
- Have a loan that is owned by Freddie Mac or Fannie Mae
- Have little or no equity in your home
- Have the financial ability to afford the new payments
The biggest enhancement is that now there is no limit to the Loan to Value (LTV), whereas before the program was limited to 105% LTV. For more information on HARP, please click here.