Thursday, May 19, 2016

HARP Surpasses 3.4M Home Owners

Borrowers’ last chance to take part in the Federal Housing Finance Agency’s Home Affordable Refinance Program is nearing. The HARP program is set to expire at the end of this year. Yet, more than 325,000 borrowers are eligible for the program, the government estimates.
The program has reached more than 3.4 million home owners since it was launched in 2009. Borrowers have saved $2,400 per year, on average, with HARP, FHFA reports.
The HARP program was created to help borrowers who are current on their mortgage payments but who have little to no equity in their home. The program allows eligible home owners to still take advantage of low interest rates and be able to refinance despite having little to no equity.
In the first quarter alone, more than 19,000 home owners refinanced their home through HARP, FHFA reports.
Eligible borrowers for the program must meet several criteria, including have a remaining mortgage balance of $50,000 or more; have a remaining loan term of at least 10 years; and have a current mortgage rate that is at least 1.5 percent higher than market rates.

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