HARP Mortgage Rates & Eligibility Lists By State
With current mortgage rates nearing a 14-month low, the government wants to help you refinance. A Federal Housing Finance Agency (FHFA) outreach program for its Home Affordable Refinance Program (HARP) has identified more than 667,000 U.S. households currently eligible for a HARP loan refinance. The typical HARP refinance now saves homeowners more than 30% annually on their mortgage. It's a terrific time to compare today's HARP mortgage rates. Click to get today's rates now. The HARP Loan ProgramThe HARP loan program was established in early-2009 as part of the government's Making Home Affordable plan. At the time, the U.S. economy was in recession and consumer confidence was low. High-profile banks had recently failed and home values were in retreat. Job growth was negative and consumer spending was weak. A downward economic spiral was in effect. Making Home Affordable sought to slow the retreat, and reverse it. The program had two elements. The first element -- the Home Affordable Modification Program (HAMP) -- aimed to help homeowners who were behind their mortgage payments to keep their respective homes. Fewer foreclosures, the government reasoned, would help to stabilize housing and home values in many U.S. cities. The second element of Making Home Affordable was HARP. In contrast to HAMP, the Home Affordable Refinance Program was geared at homeowners who were on-time with their mortgage payments but unable to refinance because their homes had lost equity since purchase. HARP was positioned as a win-win for consumers and the economy. Consumers were able to lower their mortgage rates, which resulted in lower mortgage payments and higher household cash flow. With more disposable income, then, consumers could increase spending to help propel the economy ahead. HARP was a hit. The government twice extended the program beyond its initial end date; and, reduced HARP's qualification standards so that more U.S. households would qualify. HARP has been used more than 3 million times since its inception. Click for today's HARP mortgage rates. HARP Mortgage RatesThe HARP loan is a refinance program backed by Fannie Mae and Freddie Mac, which means that it's a conventional mortgage available to homeowners with existing conventional loans only. Homeowners with an existing FHA loan, VA loan or USDA loan cannot use the HARP loan program. For everyone else whose mortgage is backed by Fannie Mae or Freddie Mac, though, the "Obama Refi" may be an option. There are only a few qualifying criteria in order to use HARP.
Additionally, the Home Affordable Refinance Program requires your home's loan-to-value (LTV) to be greater than 80 percent. HARP mortgage rates are low. This is because HARP rates are linked to the price of Fannie Mae and Freddie Mac mortgage-backed securities (MBS) and mortgage-backed securities are pricing near their best levels since last year. At today's mortgage rates, homeowners using HARP are saving 30% or more on their monthly mortgage payment. Click to get today's live mortgage rates. Where Can You Use The HARP Program?The Home Affordable Refinance Program is scheduled to end December 31, 2015 -- 532 days from now -- and the head of the HARP program has given zero indication that the program will extend into 2016 or beyond. HARP is use-it or lose-it and the government wants to make sure as many people use HARP as possible -- especially because the potential for monthly savings is so large. Unfortunately, a large number of HARP-eligible households have skipped over the program entirely. Some are unaware of the program and how it works; some believe the program is "too good to be true"; and, others think that a refinance would require a huge sum of closing costs which would negate the HARP program's benefits. The government is trying to reach these homeowners, specifically. As part of an outreach program geared at reaching HARP-eligible households, the Federal Housing Finance Agency has published a state-by-state tally showing the number of HARP-eligible mortgages. In order to be "HARP-eligible", according to the government, loans must meet basic HARP loan criteria including having an origination date prior to June 1, 2009; having a loan-to-value greater than eighty percent; and having no late payments in the last six months and, at most, one in the last twelve months. Additionally, remaining loan balances must be greater than $50,000; at least ten years must be remaining on the loan's term; and, the current note rate must be at least 150 basis points (1.5%) above the market rate. According to the FHFA, there are approximately 667,000 HARP refinances waiting to happen. Click to get today's mortgage rates. HARP-Ready Refinances, Listed By StateThe Federal Housing Finance Agency compiled a list of HARP-ready households, sorted by state. Not surprisingly, some of the nation's most populous states are also the ones with the most HARP-eligible households. Florida, Texas and California are among the ten most HARP-ready states; and Montana, North Dakota, and South Dakota are among the least HARP-ready. However, the number of HARP-eligible households by state is also affected by the local nature of real estate -- home values change differently from state-to-state. In California, for example, where home values are up as much 30% since three years ago, fewer homes meet HARP's loan-to-value requirements. By contrast, in Florida, where home value growth has been slower, there are more HARP-eligible households than in any other state. There are an estimated 36,000 homeowners eligible for HARP in Chicago, Illinois. According to the FHFA, the top ten states in which homeowners can use HARP are:
It's noteworthy that roughly 2,000 eligible loans separate Arizona from the next three-placed states of New Jersey, Missouri, and Virginia; and that the government's eligibility criteria requires homeowners to have mortgage rates at least 1.5 percentage points above today's rates. There are hundreds of thousands of additional U.S. households with mortgage rates 100 basis points (1.0%) above today's market rates. These homeowners, too, can benefit from the HARP mortgage refinance. Get Today's HARP Mortgage RatesThe HARP refinance program is nearing its expiration date and hundreds of thousands of U.S. homeowners will likely miss their window of eligibility. Don't be one of them. Via HARP, you can lower your mortgage rate and your monthly mortgage payment. See how low your HARP mortgage rate can be. Rate quotes are available instantly online with no cost, no obligation, and no social security number required to get started. Click here to get today's rates. The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates. Copyright Full Beaker, Inc. 2014 http://themortgagereports.com/16283/harp-mortgage-rates-eligible-fhfa
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