The Home Affordable Refinance Program was implemented in May of 2009 by the
According to the
"We have been self recommending customers," he said. "In the last three years we have had numerous homeowners qualify in
The ins-and-outs of the program can be a source of confusion. Under the HARP guidelines, a refinance loan can be originated for one of four reasons:
-- A reduction in interest rate
-- Replace an adjustable mortgage
-- Reduce the loan amortization term. A loan amortization term is a regular monthly payment, combining the loan principal and interest.
-- Reduce the monthly principal and interest payments.
Cummings said certain criteria needs to be met by the homeowner for eligibility, including:
-- The mortgage must be held with
-- The mortgage must have a note date on or before
-- The mortgage has not been 30 or more days delinquent more than once in the last 12 months.
-- The mortgage must be a first lien mortgage.
"Second liens or junior liens can be subordinated or refinanced simultaneously if a rate, term or monthly payment are being reduced or an adjustable rate (loan) is being replaced by a fixed rate (loan)," Cummings said.
The refinance closing costs can go up to
Cummings advises homeowners to discuss this option with their financial institution to determine their eligibility.
"It is as easy as completing an application," he said. "It can typically take a few weeks (for the application process)."
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