Though tedious, HARP refinancing still going strong for “underwater” homeowners

For borrowers still locked into a higher variable interest rates, we see the government’s HARP program work really well for refinancing. The loan process is rigorous, annoying and repetitive for the borrower, but the interest rates are excellent and appraisals are not a requirement for loan approvals. a complete gift from Uncle Sam. This allows underwater homeowners to reap the benefits of today’s great rates without worrying about the appraised value of their property.

With rates closing at our table as low as 2.75% for this program, borrowers need to seriously pursue this if their rate is at least +1% higher and if they believe they can qualify. Any competent lender can assess their scenario and make sure they are likely to get approved before they start the process and pay an application fee (yes, they can charge that). For more information on the HARP program, view the following governement informational link HARP refinance program. For some recent statistics who can benefit from HARP check out the following article FHFA: 47% of HARP Refis in January Were for Underwater Borrowers.

The #1 criteria for borrowers is that their CURRENT lender must initiate the HARP refinance. This can be both a pro and a con for borrowers, as lenders vary in their expediting of the loan process on HARP and several lenders seem committed to making borrowers lose steam on their desire to refinance. Stick with it and remember this is your government dollars at work and the burden is on your lender to prove you don’t meet the criteria the government has set.

For a list of Recommended Lenders who we have seen that are both efficient and have great rates , please contact info@theclosingcompany.net or call 305-271-0100 x 701.

You can watch our 2 minute video on Making the HARP refinance program for you and learn more about the steps you should take to insure a successful refinance: