Posted on: May 21, 2015
Today, with the difficult economic situation in America, more people are searching for ways to refinance their homes. Refinancing can lower your monthly payment and make your home more affordable.
One popular refinance option is the Home Affordable Refinance Program, or HARP 2.0. But HARP has its limitations. This program is only available to homeowners whose loan is owned by Fannie Mae or Freddie Mac.
If you currently have a conventional loan owned by Fannie Mae or Freddie Mac, HARP is a great program. More than 3 million people have used it so far to refinance and reduce their payments. Check on the official Fannie Mae or Freddie Mac websites to see if these companies own your loan. If they do, you may be eligible for HARP.
While the HARP program does not take homeowners with a VA loan, the HAMP program does. HAMP is an abbreviation for the Home Affordable Modification Program which helps financially-strapped homeowners avoid foreclosure. HAMP modifies loans so that the monthly payments for the homeowner won’t exceed 31% of their pre-tax monthly income. For people who are eligible, these modifications permanently change the terms of the original mortgage and are aimed to help homeowners to keep their homes during times of economic hardship.