HARP loans getting easier to qualify for
There is good news for homeowners with high mortgage rates who have their home loans owned by Fannie Mae or Freddie Mac on or before May 31, 2009. Qualifying for a HARP (Home Affordable Refinance Program) loan is now easier than ever, and the amount you can save per year is continuing to rise as mortgage rates fall.
Five years ago, the average homeowner saved $3,000 per year with a HARP refinance loan, but today that number has gone up to more than $4,400 per year, with the average household saving 28 percent a month on payments. The Mortgage Credit Availability Index, which quantifies how difficult mortgages are to get, has gone up four points this year to 115, which is good news for homeowners as well.
At lenders such as Loan Depot, rates are now under 4 percent, even for 30 year HARP loans. This equates to even more savings per month, especially if you have been living with a higher than average mortgage rate.
Some lenders however are requiring investor overlays which have greater restrictions on who can qualify versus the base HARP loan requirements. Make sure that you look for a lender that will be the best match for your particular circumstances. The great thing is that there is no restriction on applying for HARP multiple times, so if you were denied before you may be eligible now.
With mortgage rates at a 13 month low, now is the perfect time to start saving money on your monthly payments.
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