{"id":2692,"date":"2017-10-02T13:37:32","date_gmt":"2017-10-02T18:37:32","guid":{"rendered":"https:\/\/riverbankfinance.com\/blog\/?p=2692"},"modified":"2017-10-02T13:37:32","modified_gmt":"2017-10-02T18:37:32","slug":"will-changes-to-harp-hurt-or-help-mortgage-seekers","status":"publish","type":"post","link":"https:\/\/riverbankfinance.com\/blog\/will-changes-to-harp-hurt-or-help-mortgage-seekers\/","title":{"rendered":"Will changes to HARP hurt or help mortgage seekers?"},"content":{"rendered":"

If you\u2019re seeking to refinance after October 1, 2017, you should know there are some changes coming from Freddie Mac regarding HARP. HARP, or the Home Affordable Refinance Program, is in the waning years of its existence, which is a good thing. How Freddie Mac is changing, in relation to HARP, could be a benefit to those seeking to refinance. <\/span><\/p>\n

History of HARP<\/span><\/h3>\n

Back during the 2008 Housing Crisis, there was an overabundance of homes that were going under and being repossessed. One reason was because homeowners, who had a home with a LTV (Loan to Value) of over 80%, couldn\u2019t refinance. \u00a0Because they still owed 80% or more of the loan, no lender would allow them to refinance. So they were stuck paying a big loan with huge interest rates.<\/span><\/p>\n

Enter HARP. Harp allowed these homeowners a chance, through Freddie Mac, to refinance their loan and get a lower interest rate with more affordable payments. This allowed homeowners who were in over their heads with their mortgage a solution that didn\u2019t cost their home. <\/span><\/p>\n

Why the Change?<\/span><\/h2>\n

HARP was never created with the intention of staying around forever. \u00a0In fact, one requirement of HARP was that the loan had to be older than 2009 for the homeowner to qualify. Since then, the number of applicants has dwindled, as there are fewer mortgages from before that period in need of HARP. <\/span><\/p>\n

The good news is both Fannie Mae and Freddie Mac are starting new programs to help homeowners who are underwater with their mortgages. No program existed before 2008. Since then, the government has seen the value in allowing more homeowners options to keep their homes. <\/span><\/p>\n

Freddie Mac is replacing HARP with what is being called the Relief Refinance Mortgage. One key difference is that there is no requirement that the loan must originate before 2009. So if the loan is more recent, a homeowner can take advantage. <\/span><\/p>\n

Do you Qualify?<\/span><\/h1>\n

Homeowners could qualify for a Relief Refinance Mortgage if they meet the following requirements: <\/span><\/p>\n