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Question: What is the Making Home Affordable Refinance (HARP) program?
Answer: The program is for borrowers who are current on their mortgage but are unable to take advantage of the current lower interest rate because their homes decreased in value. Eligible borrowers may be able to refinance under this program.Question: What are the eligibility requirements under HARP?
Answer: The requirements are:The loan on your home is owned or guaranteed by Fannie Mae or Freddie Mac;
At the time of your application, you are current on your payment;
The amount on your first lien mortgage does not exceed 125 percent of the current market value of your home;
You have the ability to pay the new mortgage payments;
The refinance will improve the long term affordability or stability of your loan.
Question: How would Iknow if the refinance under HARP will improve the long term affordability or stability of my loan?Answer: The lender will provide you with a "Good Faith Estimate" and a "Truth in Lending Statement." These two statements will provide you with the interest rate, the monthly payments and the amount you will pay over the life of the loan. Compare this information from your current interest rate and monthly payments and you will see if it will make your loan payments more affordable or stable over the life of the loan. Question:
Iowe more than the property is worth. Do Istill qualify for refinance under HARP?Answer: If your first lien mortgage does not exceed 125 percent of the current market value of your home, your loan is eligible under HARP. For example if the first mortgage on your home is $250,000 and the current market value of your property is $200,000 or more, your loan is eligible under HARP.
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