Anyone who has been watching the news recently has more than likely heard of the HARP refinancing program. While it may have seen like a campaign tactic, it is actually real and is helping those homeowners who qualify, successfully refinance their existing mortgages. But for every homeowner who has had success with the program, there are just as many who have found the process to be frustrating.
Based on the recent information released by the Federal Housing Finance Agency, the HARP program has successfully helped many homeowners refinance their mortgages. The program is also credited with helping those who previously didn’t qualify successfully refinance their mortgages as well. During the month of May, HARP loans made up 20 percent of all refinance volume for that month. This is reported as the largest increase since the program was developed. During the first five months of this year, 78,000 refinances were completed because of the HARP program. This is more than the total number of HARP refinances for the entire year of 2011. The majority of homeowners who sought refinancing assistance through HARP were homeowners who found themselves underwater on their existing mortgage.
The HARP program is a great option for homeowners who are currently underwater on their mortgages that are held by either Fannie Mae or Freddie Mac. But simply because your mortgage is held by one of these companies, don’t expect the process to problem free. Because of the high number of people who are interested in HARP assistance, there are only a few lenders that are currently participating in the program. This causes many borrowers to become frustrated with the process at some point, but don’t let the obstacles deter you from securing a new mortgage. If you are experiencing trouble getting approved by one of the participating lenders, don’t give up; shop around and look into other lenders.
Because each lender that is participating in the program may have different guidelines, it is important that you are aware of all of the differences and understand what is required of you. It is not uncommon for the closing of a loan acquired through the HARP program to take up to 90 days to close. It is important that all lenders seeking to refinance under the HARP program understand the lengthy wait time and not allow it to interfere with your refinancing. The more you understand what the program entails and what is required of you, the easier it will be for you to navigate through the refinancing process.