HARP Loans Require a Benefit to the Homeowner (Video)

By: | January 21st, 2013

HARP loans, the Home Affordable Refinance Program, require that a benefit be recognized in order for the homeowner to use this refinance program. Similar to the FHA streamline program, HARP is designed to improve a borrowers financial position and lessen their burden.

In an effort to bring homeowners out of being underwater at a faster pace, many HARP refinances are for shorter terms than the traditional 30 year loan. The HARP program requires that borrowers see a benefit of either lower mortgage payments or a reduction in term in order to meet approval. This requirement makes sure that every homeowner who obtains a HARP refi will see a benefit. The video further explains how HARP accomplishes this and the guidelines it follows. While eligibility requires that the homeowner have a loan that was sold to Fannie Mae or Freddie Mac prior to June 1, 2009, the guidelines make sure that the HARP loan is the right decision for both the homeowner and the GSEs. surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at about a 1 point origination fee.


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"I was looking at a 4.375% with Wells Fargo, my local bank, before stumbling upon via a google search. They hooked me up with a longstanding savings and loan bank of which I closed on a 30 year fixed rate of 3.75% with. I'd recommend anybody looking at refinancing or buying a home give free rate a shot."

-Joe Klien, Detroit, MI