The Home Affordable Refinance Program, also known as HARP, is a federal U.S. program designed to refinance current mortgages. This home loan program is helpful to borrowers with little to no equity who are looking to refinance their property. This refinance loan program is only available for buyers who previously had Fannie Mae or Freddie Mac loans. Its purpose is to help borrowers find stable and affordable loan programs, especially for those who are struggling with lower credit. HARP became law after the housing bubble burst in the late 2000s.
5 Benefits of The Home Affordable Refinance Program (HARP)
Let's review 5 reasons why a HARP loan can be helpful.
1. Lower Monthly Payment
HARP loans are based on your current credit score and aim to reduce your estimated monthly installments (EMI). Refinancing this way generally saves money.
2. Lower Interest Rate
You have the option of reduced interest rates set by the U.S. Federal Reserve.
3. Fixed-Rate Mortgage
You can change your loan program from an adjustable-rate to a fixed-rate, which will remain stable regardless of housing market conditions.
4. Build Equity Faster
You can build the equity in your property at a faster rate and in a shorter period by opting for a short term rate.
5. Skip Appraisal
The HARP program features quicker processing and less paperwork than traditional mortgage loan programs. One benefit is that you can apply without a home appraisal.
If you’re looking for expert mortgage professionals who can guide you in processing your loans, boosting your credit score, and choosing the right home loan program, your search ends with Drew Mortgage Associates. Drew Mortgage offers a wide array of mortgage services, assisting you from beginning to end with the loan qualification process. If you’re looking for a HARP loan program, Drew Mortgage Associates can help you check your eligibility, apply for the loan by ensuring proper documentation and follow the approval process.
For more information & updates on the HARP loan program and its requirements, you can refer below: