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HARP stands for the Home Affordable Refinance Program. This program was created by the Federal Housing Finance Agency (FHFA) in effort to help existing homeowners who are current on their mortgage payment, but have little equity, to be able to refinance. Eligibility for HARP loans is limited to homeowners who currently have a mortgage held by Fannie Mae or Freddie Mac. You must have gotten your mortgage after May 31, 1999, and you must not have any 30 days+ late payments in the last six months, or no more than one late payment in the last 12 years.
There are also restrictions on the loan-to-value ratio that must be met. At Summit Lending, we’re happy to help you determine your loan-to-value, and to help you to secure a HARP loan, if all eligibility requirements are met. The benefits of HARP loans include lowering your monthly mortgage payment, building equity quicker, lowering your interest rate, and ensuring you have a fixed rate mortgage that won’t increase over time.