Discover how to conveniently refinance your underwater mortgage using the HARP program. Learn eligibility criteria, key benefits, and steps to simplify your mortgage refinancing process, helping you save on interest and reduce your loan term more easily.

Guide to Refinance Your Home Loan with the HARP Initiative

The Home Affordable Refinance Program (HARP), launched by the Federal Housing Agency in 2009, aids homeowners in refinancing mortgages when their property value falls short of the remaining balance. This program is designed to assist those struggling financially by making refinancing more accessible, especially for underwater mortgages.

HARP suits homeowners with a solid payment history who owe more than their home is worth and have not missed multiple payments. It simplifies the refinancing process with less paperwork, broadening access for many borrowers.

Benefits of refinancing via HARP include:

Lower interest rates

Shorter loan durations for faster payoff

Transitioning from adjustable to fixed-rate loans to save interest and reduce loan terms

Including closing costs into the new loan

Minimized paperwork compared to traditional refinancing

No minimum credit score needed

No appraisal or prior lender approval required

Supports mortgages underwater beyond standard limits

Eligibility requirements for HARP are:

Mortgage must be current with no more than one late payment in the past year

The property should be a primary residence, second home, or investment property

The loan must be owned by Fannie Mae or Freddie Mac and originated on or before May 31, 2009

The current loan-to-value (LTV) ratio must be over 80%

Online tools like LTV calculators and loan eligibility checkers are available on the official HARP website to assist applicants.

Although HARP can only be used once, updated eligibility rules may enhance your chances if previously used.