What is HARP?
The Home Affordable Refinance Program (HARP) was established by the Federal Housing Finance Agency (FHFA) under the Obama administration in March of 2009 in response to the housing bubble burst of 2008. At the time, many new homeowners faced having the value of their home drop below the balance of their mortgages, resulting in negative equity, also known as an “underwater” or “upside-down” mortgage. Under these circumstances, homeowners were unable to refinance to lower mortgage rates leaving many in dire financial straits.
HARP was created as a means to aid these borrowers with little or no equity, enabling them to refinance into more affordable mortgages without purchasing new or additional mortgage insurance. With HARP, borrowers have access to lower interest rates, shorter loan terms and are able to refinance from an adjustable to a fixed-rate mortgage.
Since its introduction, HARP has helped over 3.4 million borrowers with underwater mortgages. Additionally, the program has evolved over the years and now features less strict requirements for eligibility.
Global Equity Finance can help you find out whether you are one of many qualified Americans who has not yet taken advantage of all HARP has to offer.