Before we get started, what exactly is HARP?
If a borrower is current on their mortgage payments and has been unable to get traditional refinancing because the value of their home has declined, they may be able to refinance through the Home Affordable Refinance Program. HARP is designed to help borrowers get new, more affordable and more stable mortgage plans. HARP refinance loans do require a loan application and underwriting process and fees will apply.

More underwater borrowers than ever before are refinancing with the assistance of the Home Affordable Refinance Program (HARP).

“Recently HARP 2.0 was released, which includes provisions to allow more borrowers to take advantage of the program. “Numbers show HARP 2.0 is accomplishing the goals set forth – to provide relief to borrowers who might otherwise be unable to refinance due to price declines,” says FHFA Acting Director Edward J. DeMarco. Borrowers with Fannie Mae – or Freddie Mac – backed loans who are current on their underwater mortgages are taking advantage of the opportunity offered by HARP 2.0.”

The increased volume is due, in part, to record low interest rates on 30 year mortgages as well as the eradicated loan-to value cap and certain risk-based fees enabling more borrowers to take advantage of HARP. The program, which had been scheduled to expire in June 2012, has been extended through the end of 2013. With the extension of the program the previous 125% loan to value cap has been eliminated under HARP 2.0

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