What is HARP (Home Affordable Refinance Program) different from conventional refinance? This article will help you answer that question. HARP loan will finance your loan up to 105% of the value of your current home. You probably know that Harp can refinance up to 125%. But no one gives credit to that amount. So, this HARP loan is for people who:
1. Have a greater debt than home value
2. Loan interest rate higher than the prevailing interest rate
3. have an adjustable rate mortgage loans with
4. You want to refinance, but refinancing cost is too expensive for you
5. your income is reduced because the economic situation, such as termination of employment, reduction of working hours etc
If you qualify the requirements above, and want to refinance, you may file an application and benefit from this program. Harp has many advantages that set it apart when compared with other conventional refinancing program.
These are the following benefits of HARP:
1. HARP have more lower refinancing closing cost
2. More lower Underwriting cost than other loan program
3. No appraisal required sometimes
4. You can get more lower interest rate
5. There is no mortgage insurance.
There are only some benefit from HARP Program. For detail information you can contact your lender and ask them if you want to apply HARP Program. This program is very different from other conventional refinancing program. Obama do a great job creating this program. Hopefully you can take benefit from it.
