Many homeowners are confused about HARP, HARP 2.0, and HARP 3.0. Let’s add some clarity to the situation.
Wednesday, May 6, 2015
A little history
The government launched HARP (Home Affordable Refinance Program) in 2009 to help homeowners who had been caught in the real estate bubble of 2008. In short, if you were seriously behind on payments (maybe because of skyrocketing adjustable mortgage rates, or you lost your job - or both) or underwater on home equity (due to plummeting comparable values in your neighborhood), you were a candidate for a HARP refinance…
...if you met certain loan-to-value guidelines. Although over a million U.S. households were able to meet that requirement, many others went unserved by the original HARP program.
Chances are, you know one or more families who lost their home because they didn’t qualify for HARP in exactly the right way.
That’s why in 2012, HARP 2.0 was born. It removed not only the loan-to-value limits, but also other limits that would prevent many families from taking advantage. In short, HARP 2.0 is what HARP should have been from the beginning.
Many more millions of Americans qualified under HARP 2.0 - and it was and is a good thing.
And now, there is talk about HARP 3.0.
Should I wait for HARP 3.0?
If you’re current on your mortgage, you may be eligible for HARP if your loan is owned or guaranteed by Fannie Mae or Freddie Mac. Check these sites for more information on your loan.
In fact, if you are struggling to stay in your house due to high mortgage payments, you should find out if HARP 2.0 is right for you.
Reasons to refinance with HARP 2.0 now
- Mortgage rates are near all time lows, chances are they will increase in the coming months and years.
- You can convert your ARM to a fixed-rate mortgage.
- You can lower your monthly payments, even if you are upside down on your home equity
- As of June 18th 2014, HARP 3.0 is still waiting for a vote in the Senate - don’t take a chance of it not passing if you qualify now.