HARP 2.0 Mortgage Program for Underwater Homeowners Is Still Worth Giving a Try

The Harp 2.0 mortgage program for refinancing homes is still very much in action. Underwater homemakers can apply for refinancing mortgage harp 2.0 plan to reduce monthly payments drastically.

The Harp 2.0 mortgage program was a revamp of the erstwhile home affordable refinance program Harp. The plan was modified to make it convenient for underwater homeowners to take advantage of lower mortgage interest rates and reduce monthly payments. Qualified borrowers could save money in distressing financial situations that were an obvious outcome of the bursting of the real estate bubble in 2008.From then onwards, the HARP 2.0 did make inroads into homeowners’ lives although the results have found to be far from satisfactory. Regardless of whatever may be the exact status of the HARP 2.0 program, it was designed to be beneficial to borrowers in a number of ways.

Financially struggling borrowers who qualify for home refinancing mortgage harp 2.0 plan have the chance to lower monthly mortgage payments drastically and save hundreds of dollars annually. The interest rates provided to HARP 2.0 eligible applicants will be fixed for loan terms extending from 10 to 30 years. However, the basic condition to get approved for HARP loans still applies, mortgages have to be owned or guaranteed by Fannie Mae or Freddie Mac. Once qualified, the monthly payments will be low and predictable over the entire loan term. Home equity will get built much faster if borrower maintains regularity in payments. 

Speculation has been ripe that Harp program 3.0 is in the offing but there is no such proposal that is worth a consideration. The Harp 2.0 itself is good enough to give necessary much needed relief from high mortgage installments. LTV restrictions have been removed and the amended rules allow homemakers to borrow up to 125% of home values. Nevertheless, there will be some complex paperwork that is needed to be prepared and furnished along with your HARP 2.0 application. Mortgage specialists are well versed with the documentation process and so, it is desirable to seek their advice. 

Hence, there is little need to wait on the Harp program 3.0 eligibility criteria. The Harp 2.0 permits certain category of borrowers to refinance second time.  Some websites online can give the latest status of the federal government plan. These online sites provide free of cost service for fixing free consultations with competent local mortgage experts. You can use these sessions to analyse the exact status of your mortgage debt situation. However, it could be vital for you to make sure that you have found a totally reliable and reputable website to work with.      

Harp 2.0 Program – Easy to Know About Harp 2.0 Mortgage Online

HARP or home affordable refinance program was created during March 2009. This is a program created by the federal government of the United States of America (USA). It has been designed with the specific intention of helping around five million people in the country who own homes and are presently just behind their mortgage payments or seriously behind same. It helps them refinance their existing mortgage into a fixed loan where the monthly payments are on the lower side. The HARP 2.0 program has helped so many people in the USA that it is hard to keep track of it.

Till August 2011 around 894,000 borrowers had refinanced their loans by taking part in HARP. This was far less than expected and this is why the program was rebooted in October 2011 by the then President of the US (POTUS) Barack Obama. The aim at that time was to help more people who seriously needed it. The new program was named HARP 2.0. It came into effect from December 1, 2011. The beneficiaries in this case were people whose loan-to-value-ratio was lower than 125 per cent. Over the years, many people have availed HARP 2.0 refinance. During the first three months of the 2012 economic year the program was also expanded to include people whose loan-to-value ratios were more than 125 per cent.

This program was extended till December 31, 2013. There are several areas of difference between HARP and HARP 2.0. The changes made were quite significant indeed. The underwater limits were made less strict than before. In some cases, they were not even there. Borrowers had the chance to refinance their mortgages even in case their houses had depreciated by a significant extent. This was what made the HARP 2.0 mortgage so popular in the first place.

In HARP the loan-to-value ratio had been fixed at 125 per cent. With HARP 2.0 there were instances where underwriting and appraisals were done away with. Some homeowners were allowed to get their loans without any need for underwriting or appraisal as such. For more information on HARP 2.0 eligibility, please visit Mortgagerefinancebadcredit.com