Housing Refinance Program Offered By Federal Agencies Hopes To Help The Ailing Housing Market
It’s amazing how much money can be saved by refinancing. Hopefully this is able to help many people across the country.
In the government’s latest attempt to address the ailing housing market, President Obama will announce changes to a federal program Monday that will make it easier for struggling homeowners to refinance to today’s near-record low rates.
Under the new program, homeowners who owe more on their homes than they are worth will be able to refinance no matter how much they are underwater, as long as they are current on their payments.
The revamped Home Affordable Refinance Program (HARP) will also streamline the refinancing process, doing away with certain types of appraisals and underwriting requirements, and reducing or eliminating fees that prevented homeowners from refinancing in the past.
More than 890,000 homeowners have already refinanced under the HARP program, which is available to borrowers with loans backed by Fannie Mae and Freddie Mac that were originated before May 31, 2009. But hundreds of thousands more could not qualify — mainly because of the previous 125% loan-to-value limit on the program or because banks would not take on the risk.