Read more below.

Government Programs

Direct Your Own Loan >

2014 HARP Loans Can Save You Money

By B Wood
Jan 16th, 2014

no equity harpThe HARP mortgage loan program has been extended into 2014, and there is still time to save money on your home refinance. The HARP program was established to help the millions of homeowners that lost equity in their homes. Many families were stuck with high mortgage balances and low home values, making it difficult to pay the bills and stay in an underwater home. The goal of the program is to make homeownership more affordable by lowering mortgage interest rates and turning variable rate mortgages into fixed rate loans.

How Can a HARP Loan Help Me?

If you have an adjustable rate mortgage (ARM), you are subject to the constant uncertainty of the market. If interest rates rise, you could be stuck with payments that are far beyond what you can afford on a monthly basis. There is no way to do a long term budget when you have an ARM because you can’t predict what the payments will be. When you refinance into a fixed rate mortgage, you can create a budget you can count on. Your monthly mortgage payment will stay the same until your mortgage is paid off.


HARP can also help you if your interest rate is higher than the rates being offered today. Lowering your mortgage rate can save you hundreds and thousands of dollars. This is extra money you can use to pay down credit card debt, put into savings, and spend on regular household expenses.

Who Qualifies for HARP?

You need to have less than 20% equity in your home in order to qualify. This is the opposite of a normal home loan. Where most mortgage lenders want you to have equity, with a HARP loan you do not want equity. This means you can refinance even if you owe double what your home is worth. It is important that your mortgage loan is paid on time. If you are worried about being able to make the payment, refinance before you get in trouble.

In order to qualify your loan has to be owned by Fannie Mae or Freddie Mac and have closed after May 31st, 2009.

Do I Have to Pay PMI?

No, if you are not paying private mortgage insurance now it will not be added to your loan when you refinance.

Can I Get Cash Out?

No, the goal of HARP is to lower interest rates and fix ARM loans. You cannot increase the balance of the loan by getting cash out. Some fees associated with the loan can be rolled in, so you don’t need to bring cash to the table either.

Do I Have to Use My Existing Mortgage Lender?

No, you can work with a new mortgage banker as long as they are approving HARP loans. Some lenders have chosen not to participate.

Interest rates are rising and will continue to go up throughout 2014. If you are looking to save money or turn your ARM loan into a fixed rate mortgage, contact your mortgage lender today. Refinance now to get the maximum savings.