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HARP Loans Help You Afford Your Mortgage Loan

By B Wood
Feb 18th, 2014

afford mortgageThe middle class has been hit hard over the past several years. Economic downturns; job losses and stagnant pay rates have made it more and more difficult to pay the bills for millions of families throughout the United States. Fortunately there is mortgage payment relief available through HARP. If you have been hit hard by the economy and are trying desperately to hold onto your home, a HARP refinance could be the solution.

HARP Can Lower Your Monthly Mortgage Payment

You can save money on a monthly basis by lowering how much you pay on your mortgage loan. This is usually the highest expense that any family has. Traditionally, renting a home was cheaper but in the past several years rental prices have gone up, making staying in your home the best option. The challenge is that if your interest rate is high, your monthly mortgage payment will be high.


HARP loans are designed to help families reduce their interest rate so that their homes can be affordable, and they can continue living in them. This type of stability is important for families, children, and neighborhoods. Recognizing that, the HARP loan program is easy to work with.

How to Qualify for a HARP Refinance

• Owe more than 80% of your home’s value on your current mortgage loan.

• Your loan needs to be owned by Fannie Mae or Freddie Mac.

• You need to pay your mortgage payment on time.

• Your current home loan needs to have closed after May 31st, 2009.

If you meet all of these items, a HARP mortgage lender can help you to lower your interest rate and monthly mortgage payment.

Tip: You can select any HARP mortgage lender and do not need to work with your current mortgage banker.

Alternatives to HARP Mortgages

If you do not qualify for HARP, but still need to save money, there are other alternatives. For example, the FHA Streamline Refinance program can lower your interest rate and mortgage payment without ever checking your credit, paystubs, or appraised value. All you need is a current FHA home loan that is being paid on time. The FHA believes that lowering a payment will help families to make their payments on time, which will in turn lower their default rates. It is a win-win situation for everyone. The key is you need to work with an FHA approved lender because not everyone offers this loan program.

If you have a VA home loan, they offer the Interest Rate Reduction Loan, which is their version of a streamline refinance. As long as you are making your payments on time the VA will lower the interest rate of an existing VA home loan using an IRRL. A VA approved mortgage lender can give you specifics and help you to start the process.

All three of these loans can be used to save money and make it more affordable to own your home. By keeping more money in your pocket, you can pay other bills and live life more comfortably. Contact a mortgage banker today to learn how much you can save.