Since the inception of Home Affordable Refinance Programs, they have revolutionized the U.S. economy and helped many homeowners refinance their mortgage with ease. The HARP could help even more people, but many homeowners do not know what to do. Still, some of those who understand what HARP involves cannot tell the right things about the program.
So, before you consider taking the HARP home loan, experts from Primary Residential Mortgage, Inc. suggest that you answer the following questions:
Can you refinance when you have a second mortgage?
Refinancing your home with HARP is possible. However, the stated guidelines forbid the combination of more than one mortgage in cash-out refinances. If you need to refinance your mortgage using HARP, the lender of the second mortgage must give you permission to replace the lien on your title.
Is Refinancing Possible with no equity in your home?
The main goal of a HARP loan is to help homeowners refinance their home, especially in the absence of home equity. Homeowners with no equity can get a HARP loan regardless of their financial position.
Is HARP applicable when your loan has private mortgage insurance?
Unlike HARP 1.0, HARP 2.0 is applicable for loans with private mortgage insurance. The HARP 2.0 program also applies to loans that have lender-paid and borrower-paid mortgage insurance.
Is there a second chance to gain approval for HARP?
If you have applied for the HARP program and was unsuccessful, you can give it a second try. You will still have equal chances as the rest to gain approval. One lender can deny you a loan, but another can approve your next request.
While the HARP is friendly, it is not suitable for people who are not consistent with their mortgage payments. The program is not a scapegoat plan for those who don’t want a foreclosure of their home. To know whether you qualify for this program, contact a licensed mortgage company that has a wealth of experience in this field.