Homeowners with underwater mortgages can refinance through HARP.
Homeowners often refinance their homes to make mortgage payments more affordable. However, lenders will not refinance your loan with a debt that exceeds your home's property value. The Home Affordable Refinance Program, or HARP, can help you reduce the interest rate and loan terms on your home mortgage if your home's property value has fallen since you purchased it. By doing so, HARP helps lower your monthly payment to fit your budget and help you avoid a future foreclosure.
Instructions
1. Use the free services of a housing adviser approved by the U.S. Department of Housing and Urban Development to make sure HARP is right for you. Contact an adviser at 888-995-4673 to explore all of your options for avoiding foreclosure and staying in your home.
2. Contact your mortgage provider to find out whether or not Fannie Mae or Freddie Mac owns your loan. You can also contact Fannie Mae directly at 800-732-6643 and Freddie Mac at 800-373-3343 to determine who owns your loan. If neither company owns your loan, you will not qualify for HARP.
3. Check your payment history for the previous 12 months to be sure that you have not missed any payments by more than 30 days.
4. Get a home appraisal to determine your home's market value. Compare it to the amount you owe on your mortgage. So long as you owe more than your home is worth, you may apply for HARP. However, you will not qualify for HARP if the outstanding balance on your home is more than 125 percent of the market value of the house.
5. Call your mortgage provider to find out whether or not the company participates in HARP. If it does not, contact other mortgage companies and banks to compare their rates and fees, and refinance with a bank that offers you the most affordable terms. Speak with a Freddie Mac or Fannie Mae representative to find a list of HARP-participating lenders in your area.
6. Submit an application according to your lender's requirements. Come prepared to supply information about your current loan, income, assets, investments and tax information from recent years.
Tags: your home, your loan, more than, owns your, owns your loan
