It looks like homeowners are getting a little too cautious about programs, which could help save them hundreds of dollars each month on their mortgage payments. A recent report suggests that very few homeowners are taking advantage of the Home Affordable Refinance Program (HARP). What is it all about and how can it help save you money?
The Home Affordable Refinance Program was introduced in 2009 in an effort to help homeowners save more on their mortgage payments. According to Trulia, HARP is specifically made for those who had little to no equity in their home.
The said program "offers refinancing rates that are at or below rates conventionally applied to loans with 20 percent equity and there are no credit score requirements." Aside from this, the program can also shoulder the closing costs and lift the burden from the homeowners.
There is still a year left before HARP officially comes to an end, and the publication noted that about 429,379 American homeowners are eligible for the said program. However, very few are taking notice of it in fear that the offer is too good to be true.
HARP is said to cover loans owned by Fannie Mae or Freddie Mac and those who have a loan-to-value ratio 80 percent or more. Those who are eligible for the said program should have the home as their primary residence or a one-unit second home.
Those who are investing in the real estate market with one- to four-unit properties are also eligible for HARP. Further details about this can be seen in the HARP website.
The aforementioned publication noted that previous requirements of HARP stated that no homeowner can have a loan-to-value ratio of over 125 percent, but updates made in 2012 eliminated this clause.
Those who are interested in taking advantage of the benefits of HARP may contact their mortgage company for more details.