HARP Home Refinance 2016

The Harp program is extended to the end of 2016.

I am looking into this, not necessarily to have a lower monthly payment, but to have a similar payment but change from a 30 yr fixed to a 15 or 20 yr fixed mortgage.

Apparently, to be qualified, you have to have at least $100,000 left to pay on your home.

I am wondering if anyone else has taken advantage of this program and how much they saved, or how it has affected them.

thanks

I work in mortgage lending.

All HARP does is make it easier for some to refinance even if their home is underwater. To qualify, your mortgage must have been originated prior to June 2009. If you refinanced AFTER June 2009, you are no longer qualified for HARP.

The rates are marginally better than a regular refinance. The real advantage is that sometimes an appraisal is not required and a few other things that banks normally require when doing a normal refinance.

You still need good credit, job, etc. The program is designed to assist those who continued to make their mortgage payments but couldn't refinance simply because the value of their home declined.

Refinancing to a shorter term amortization makes sense if you plan on being in your home for the long term. Smart home owners refinance to a shorter term while keeping their current payment the same.

a reply to: Edumakated

thanks for the info, very helpful

I talked to a someone yesterday that said the mortgage needed to have at least $100,000 left on it (which mine does not) but if I borrowed enough money to equal that, then I would qualify, even though I bought my house 3 yrs ago.

Does that seem correct?

a reply to: veracity
Reducing equity for the sake of increasing debt does not seem to be a fiscally prudent approach.

originally posted by: veracity
a reply to: Edumakated

thanks for the info, very helpful

I talked to a someone yesterday that said the mortgage needed to have at least $100,000 left on it (which mine does not) but if I borrowed enough money to equal that, then I would qualify, even though I bought my house 3 yrs ago.

Does that seem correct?

Whoever you talked to doesn't sound knowledgeable or didn't explain things. A lot of times banks sometimes won't do mortgages for less than $100k. The issue is that it cost just as much to process a $100k mortgage as it does a $500k mortgage. However, the $100k mortgage typically doesn't generate enough profits relative to the required work.

If you increased the mortgage above the existing mortgage balance it would be considered a cash out refinance instead of a rate/term. It isn't something you should unless you really need the money. because you've only owned the home three years, you don't qualify for HARP anyway.

People refinanace for three main reasons:

1) lower rate and thus lower payment
2) reducing the term or amortization of the mortgage... going from a 30 year to a 15 year.
3) need to access equity

a reply to: Edumakated

yes, I could use the money but if I do not qualify for HARP anyways, then Im not going to waste my time thinking about it.

Just wondering why they say I do?

originally posted by: veracity
a reply to: Edumakated

yes, I could use the money but if I do not qualify for HARP anyways, then Im not going to waste my time thinking about it.

Just wondering why they say I do?

Unfortunately, there are a lot of idiots in the mortgage business. A lot of companies advertise heavily and staff up boiler room outfits hoping the phone will ring (Quicken Loans). People call thinking they qualify and they don't. Then they will try to convince you to do something else.

a reply to: Edumakated

I notice these companies have pop up ads all over the internet, I went straight to the gov't site and filled out the questionnaire and someone contacted me from Coldwater Bank.

Thanks for the help