What is HARP?
If you have watched the news in the past few months, you might be asking What is HAPR? The Making Home Affordable Programs, also known as HARP, are sponsered by the United States Government and are your best help options if you are currently having mortgage loan concerns. These programs, which are unlike your typical home mortgage refinance loans, are a tool intended to allow those who qualify to restructure their existing mortgage loan into a more affordable loan to repay. The Making Home Affordable Program consists of two primary parts:
1. The Home Affordable Modification Program (HAMP) This program gives the option to restructure or modify an existing mortgage loan because it reduces the interest rate, which in turn reduces the monthly repayment amount, thus making it more affordable to repay. In addition it allows the homeowner to extend the term of their loan up to 40 years.
2. The Home Affordable Refinance Program (HARP) This mortgage refinancing option give an individual the choice to change their existing mortgage interest rate and make the opportunities for repayment simpler.
The Home Affordable Refinance Program (HARP) In 2009 the Obama administration initiated the US Government refinance program “HARP”, which is intended to supply opportunities for homeowners who are facing delinquency issues, in order to avoid foreclosures and bankruptcies and therefore keep their existing homes. The HARP program also gives homeowners the option to restructure or alter their existing mortgage loan terms and conditions, so they can take better advantage of more favorable loan repayment conditions.