Home Affordable Refinance Program – Mortgage Springfield
Eligible homeowners who are current on their mortgages but have been unable to take advantage of today’s lower interest rates because their homes have decreased in value, may now have the opportunity to refinance. Through a refinance under HARP, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they own or that they guaranteed in mortgage backed securities.
You may be eligible if:
- You are the owner-occupant of a one- to four-unit home.
- The loan on your property is owned or guaranteed by Fannie Mae or Freddie Mac and you are not currently paying PMI (Principle Mortgage Insurance).
- At the time you apply, you are current on your mortgage payments, means that you have not been more than 30 days late on your mortgage payment in the last 12 months.
- The amount you owe on your first lien mortgage does not exceed 125% of the current market value of your property.
- You have a reasonable ability to pay the new mortgage payments.
- The refinance improves the long-term affordability or stability of your loan.
Fannie Mae and Freddie Mac have established toll-free telephone numbers and web submission processes to make this data available. Homeowners can enter information to determine if either agency owns or guaranteed the loan.
For Fannie Mae:
1-800-7FANNIE (8am to 8pm EST)
www.FannieMae.com/loanlookup
For Freddie Mac:
1-800-FREDDIE (8am to 8pm EST)
www.FreddieMac.com/mymortgage
This information is not a guarantee of eligibility for a refinance under HARP, so give me a call and we can check to see if you would qualify.
Eligible loans will include those where the first lien mortgage does not exceed 125% of the current market value of the property. For example, if your property is worth $200,000 but you owe $250,000 or less on your first lien mortgage you may qualify. The current market value of your property will be determined after you apply to refinance.
You can still qualify for a refinance under HARP if you have a first and second lien. As long as the amount due on the first lien mortgage is less than 125% of the value of the property, homeowners with more than one mortgage may be eligible for a refinance under HARP. Your eligibility will depend, in part, on two additional requirements:
- The lender that has your junior lien mortgage must agree to remain in a junior lien position.
- You must be able to demonstrate your ability to meet the new payment terms on the first lien mortgage.
Comments or questions are welcome.
