Best refinance options for your home

Even though mortgage rates are the lowest they have been since last year, the number of HARP loans being closed has dropped. According to the Mortgage Reports, in July there were only 16,000 HARP loans closed in the country, the lowest amount since the program began.

The reason behind this drop in HARP loans is that home values have been on the rise. In order to qualify for the Home Affordable Refinance Program, a home must have less than 20 percent equity, and the loan must have been dated before May 31, 2009. In the early days of the program, many home loans would have qualified for the program, but that is no longer the case.

If you qualify for a HARP loan, now is definitely the time to take advantage of the program, as HARP 2.0 now allows an unlimited loan to value ratio. The program is set to end on December 31, 2015, so homeowners still have some time.

If you still want to take advantage of today’s low rates and do not qualify for HARP, there are still many refinance options available. Refinance programs at BestRateUSA include FHA and VA refinance mortgages, which are insured by the federal government and the Department of Veterans Affairs, respectively. Both of these programs have more relaxed credit standards to help homeowners.

Conventional refinance mortgages are also always available, which are great for those who want to lower their interest rate and monthly payments, or want to decrease their loan term to pay off their home sooner. By lowering your interest rate by only a couple points, you could save tens of thousands in interest payments over the lifetime of your loan.