free with HARP loans!
First, let's talk about what a HARP loan is and how it works. In short, a HARP loan allows eligible homeowners to refinance their mortgages even if they owe more than their home is currently worth. This program was created to help homeowners who were affected by the housing bubble and subsequent economic downturn. Many homeowners found themselves with underwater mortgages - meaning they owed more on their homes than they were worth - and were unable to refinance at lower interest rates.
That's where HARP comes in. This program is designed to help homeowners who are current on their mortgage payments but are unable to refinance due to their home's low value. With a HARP loan, you may be able to refinance into a lower interest rate and save money on your monthly mortgage payments.
One of the biggest benefits of a HARP loan is the option for a free home appraisal. Typically, when you refinance your mortgage, you'll need to pay for an appraisal to determine your home's current value. However, with a HARP loan, you may be eligible for a free appraisal - saving you hundreds of dollars in upfront costs.
But how do you know if you're eligible for a HARP loan? Here are some of the basic requirements:
- Your mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac.
- Your mortgage must have been sold to Fannie Mae or Freddie Mac before June 1, 2009.
- You must be current on your mortgage payments and have no late payments in the past six months.
- You must have a good payment history in the past 12 months.
- Your current loan-to-value ratio (LTV) must be greater than 80%.
If you meet these requirements, you may be eligible for a HARP loan. And with the potential for a free home appraisal, there's even more incentive to explore this option.
But there are some other things to consider before deciding if a HARP loan is right for you. For example, you'll want to look at the fees associated with refinancing and determine if the savings on your monthly payments will outweigh those costs. You'll also want to consider how long you plan to stay in your home, as refinancing can reset the clock on your mortgage term.
Overall, a HARP loan can be a great option for eligible homeowners who are looking to refinance their mortgages and save money on monthly payments. And with the potential for a free home appraisal, it's even more attractive. If you think you may be eligible for a HARP loan, talk to a mortgage professional to learn more about your options.