As a home owner, you may have heard something about HARP loans. And we’re not talking about the musical instrument — although this may also be music to your ears.
What Is A HARP Loan?
The Home Affordable Refinance Program, better known as H.A.R.P, was created to help home owners who owe more on their home than the property is worth. This would mean that your home is worth less than the present mortgage amount. Basically, the value of the home has declined. It could be for a variety of reasons, but often it is driven by local economic trends and other factors beyond your control.
So far, more than 3.4 million people have benefited from HARP and have saved up to thousands of dollars on their mortgage payments. HARP loans can be a life changer for many home owners, and there’s good news for those with positive equity in their home: You may be eligible for HARP, too. There are a couple of ways that a HARP loan can help save you money:
- Use HARP to refinance to a lower interest rate on a 30-year fixed rate loan
- Refinance your current long-term fixed or variable rate loan to a shorter-term fixed rate loan
What Are The Requirements For A HARP Loan?
Many people are still eligible for HARP, and if you have already applied in the past but were turned down, you might want to try again. The government has modified the requirements for eligibility, and you may find that you now qualify. You can call one of Mr. Cooper’s home loan experts to learn more.
If you want to see what kind of savings you could have in store, check out these mortgage calculators to better understand if refinancing is right for you.