By Don Tagala, ABS CBN North America Bureau

April 25, 2013

Washington DC – The Federal Housing Finance Agency is extending the Home Affordable Refinance Program (HARP) to 2015.  HARP is a federal effort aimed at helping underwater and near-underwater homeowners refinance their mortgages.

It would have expired at the end of the year.

HARP targets homeowners who are current on their monthly payment but are unable to refinance due to the dropping home prices.

“What that means is the homeowner owes more on their mortgage than their home is currently worth,” explained the agency’s acting director Edward Demarco.   He added that by refinancing one’s mortgage thru HARP, homeowners could take advantage of the current low interest rates to lower their monthly payments.

“If the homeowner is having trouble with their mortgage, please keep paying but if you can’t, don’t just stop paying, we encourage homeowners to call their lender and say I’m having difficulty making my mortgage payment, “ he said.

To be eligible for a HARP refinance homeowners must meet the following criteria:

-the loan must be owned or guaranteed by Fannie Mae or Freddie Mac.

-the mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.

-the mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.

-the current loan-to-value (LTV) ratio must be greater than 80 percent.

There are 2.3 million borrowers who have refinanced through HARP since April 2009.

The program enables homeowners to refinance into a 30 year mortgage or even better, a shorter term mortgage– and there are no fees for short term mortgage of 20 years or less.

“If you shorten the mortgage term, you pay down your loan balance faster, and that will allow you to get back above water so the amount you owe on your house is less than the value of the house itself,” Demarco explained.

For more information on the Home Affordable Refinance Program, homeowners may visit the website at www.fhfa.gov .

One Comment

Leave a Reply



  • noz
    26 April 2013 at 10:09 am - Reply

    obama’s spending sprees continues at the expense of the taxpayers, monies are laid out on this non stop ineffective bailing out of homeowners unable to keep up with personal budgets due to high pay roll taxes, zero increments for years of working, buying inflated essential consumer goods, groceries and foods with the deflated dollar, unstable positions at the workplace, at high risks of job lost. there are numbers of homeowners granted home bailouts by obama, eventually their homes were foreclosed, for the very simple reason the homeowners are consistently short of budget to pay their mortgages. the prolong extensions of the homeowners bailout have proven to impede the economy’s growth strongly tied to the housing market. this home bailouts are asset aka wealth redistributions, socialism in action, going no where, but wastes the hard earned dollars of the hard working citizens/legal residents. marxism is the ideologue of obama with his undying love of free for all spendings of others people’s money and have program over half of the population to embrace his ideologues, if its not housing bailouts, the public in huge numbers possessions of EBT, food stamps, etc. obama’s hate of capitalism have driven out of the country the rich job creators, the effect are jobs have become scarce, hard to come by or hard to find, so obama tried at one point as an employer, salaries again paid by the hard working taxpayers. the jobs obama created through stimulus did not last with the funds going to zero.