The economy is in a horrible slump, unemployment is at 9%, and homes have taken a 30% plus hit in value. Â Saving money is a top priority for the majority of people these days, but it can be hard to do. Â Refinancing a mortgage can be a great way to save money. Â Mortgage rates are at historic lows, and refinancing a mortgage can save you hundreds of dollars a month. Â But what if your mortgage is more than your house is worth? Â The government has an answer: Home Affordable Refinance Program or HARP. Â
Harp is a way to refinance your mortgage if you cannot refinance with a conventional mortgage. Â It is a way to lower your rate and payment, and save money on a monthly basis. Â There are some qualifications though:
- The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
- The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
- The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
- The current loan-to-value (LTV) ratio must be greater than 80%.
- The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.