HARP 2.0 Refinance Program – Questions & Answers – Part 2

As we wrote about in recent months, the HARP refinance program has now been expanded to allow more homeowners the option to refinance and take advantage of historically low interest rates. The program is a government backed initiative to allow borrowers who could previously not refinance, due to lack of equity or being upside down in their homes, to now do so.

HARP 2.0 is now set to officially become available to borrowers who have loans that are serviced by Fannie Mae and Freddie Mac, with no restrictions on value. In other words, the current appraised value of your home will not disqualify you from refinancing, regardless of value.

In recent weeks we have covered some basic information about the program and last week we started by answering some common questions about the program. This week, we continue with some more questions and answers.

Question #1: Can I refinance more than one property with the HARP program, if I own multiple homes?

Answer: Yes, you can refinance multiple homes with the HARP program, if you own more than one home. As we covered last week, the HARP program is available for borrowers, regardless of whether they do live in a home or use it as a second home or own it as an investment home. However, it is worth noting that once you refinance once using the HARP program, you cannot refinance the same loan again through the HARP program.

Question #2: What types of loan programs will be available for the refinance of my home through HARP?

Answer: The loan options for the HARP refinance program will be limited to 30 year and 15 year fixed mortgages. With interest rates at all time levels however, it doesn’t make much sense than to lock into one of these two programs anyway, as there are not tremendous benefits to be had in the current marketplace in adjustable rate loans. Interest rates are low now and may be for a little bit still, but inevitably they will rise, when that happens, you want to be protected with a fixed rate.

Question #3: What if my loan is not owned by Fannie Mae or Freddie Mac, what options do I have then?

Answer: While it is not common, we have seen instances where a homeowner’s property has not shown up as a Fannie Mae or Freddie Mac owned loan online, but upon calling into your existing loan servicer, the loan has been verified as being owned by one of the two. So, if the loan does not show up as owned by either, a phone call to your existing loan servicer may be a good option to make sure it is owned by Fannie Mae or Freddie Mac.

In addition, if your loan is perhaps an FHA or VA loan, there are also already existing streamline refinance options that may be available to you as well to lower your current interest rate and mortgage payments as well. So it is advisable to speak to a lender about those options as well.

If you do not fall into any of these categories, then the options are limited, but work is being done now to see if another refinance program can be established for privately owned loans, through government assistance and as this information becomes available, we will of course provide this as well.

As always it makes sense to speak to a lender about current home loan options and it is always advisable to speak with a licensed mortgage lender, such as Strategic Mortgage. In future weeks, we will continue to provide additional updates on the HARP 2.0 program.

For more information on home purchase loan or refinance programs for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com