Recently, the Government announced that HARP (Home Affordable Refinance Program) has been changed so that more homeowners can take advantage and refinance at the low interest rates that are available today. This stimulus program is designed to save struggling homeowners money on their monthly home loan payments, stabilize the housing market, and boost the overall economy. Many homeowners have benefited from this program, but many more are still able to. Here is what homeowners should know about the HARP stimulus.

Homeowners who are upside down on their mortgage are the main target of the revisions to the HARP stimulus. These programs were actually enacted in 2009 yet have not been able to impact the market as much as hoped due to homeowners not taking advantage and participating. These recent changes were done to promote interest in the program and convince more homeowners to better their financial situations and get a beneficial, money saving, low interest rate mortgage refinancing. Less than 500,000 of the estimated 5 million homeowners who have an upside down mortgage have taken advantage of this housing stimulus plan. That means millions of additional homeowners can still benefit and start saving a lot of money on their home loan payments.

Even if you do not know it, you may be eligible for mortgage refinancing using HARP. Millions of homeowners have a mortgage by Fannie Mae or Freddie Mac. Most of those homeowners will easily get approved for a HARP refinance. In order to take full advantage of the HARP stimulus, homeowners need to meet a few requirements such as:.

-The mortgage needs to be backed or owned by either Freddie Mac or Fannie Mae.
-The mortgage must have not been refinanced in the past using any Government stimulus program.
-Homeowners need to have been current on their last 12 monthly mortgage payments.
-The LTV (loan to value) ratio on the home loan must be more than 80%

There are literally over 4 million homeowners that are able to benefit from this housing stimulus program right now. It has never been easier to get a mortgage refinancing approval at a very low interest rate than it is right now. This HARP stimulus was intentionally designed to help a lot of people save a lot of money, the overall housing market, and boost the economy. Also, many foreclosures will be avoided by homeowners taking action now and taking advantage of the benefits of a proper HARP refinance.

Homeowners are being encouraged to take advantage of this program and get a mortgage refinancing while interest rates hover near all time lows. The first thing a homeowner should do is check with their mortgage lender or bank, or review their paperwork, and see if their home loan is owned by either Fannie Mae or Freddie Mac. If it is, contact a mortgage lender or bank who is able to offer HARP mortgage refinancing options. Homeowners should take action now and get themselves into a better financial situation by taking advantage of the Governments HARP stimulus.

-M Petrone

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