Monday, May 4, 2015

3 Tips for Refinancing a Fannie Mae Mortgage Under HARP in Phoenix

If you’re questioning what to do about an underwater mortgage, now is a good time to consider the Home Affordable Refinance Program (HARP) if you are eligible. Extended through the end of 2015, HARP is designed to help borrowers who are either underwater or nearly underwater refinance their homes.

Arizona State Credit Union can help borrowers with a Fannie Mae-backed loan take advantage of HARP and the credit union’s related services. While many Phoenix suburbs have already been hit with high rates of subprime foreclosure, it is not too late to benefit from this program. Below are three tips that can help you get your home loan refinanced:

Learn more details about how to qualify for HARP >>>
1. Understand What HARP Can Do for You

The first step in taking advantage of HARP is to understand what it is and how it could help you. In 2009, the Federal Housing Finance Agency created HARP to help homeowners who had very little or no equity refinance their home loans into more affordable options. Recently, HARP 2.0 made changes to the existing program to extend the term and give borrowers who have been unable to refinance by others means a chance to participate.

HARP 2.0 eliminated various fees, removed the 125 percent cap on loan-to-value ceilings for fixed-rate mortgages, eliminated the need for a new appraisal in most cases and made provisions to include second or vacation homes at different fee levels. The program is designed to help struggling borrowers with Fannie Mae loans and a demonstrated payment history find affordable ways to keep their homes.

2. Find Out If You Are Eligible for HARP

In order to participate in HARP, you must meet certain baseline requirements. To be eligible, your loan must be guaranteed or owned by Fannie Mae, and Fannie Mae must have bought the loan before May 31, 2009. You must not have refinanced under HARP before, unless that refinance took place between March and May of 2009.

The current loan-to-value on your loan must be greater than 80 percent, meaning you have less than 20 percent equity in your home. Most importantly, you must be current on your mortgage and have no late payments in the last six months and no more than one late payment in the last 12 months.
3. Select Arizona State Credit Union as Your Lender

Arizona State Credit Union is actively participating in HARP and is a great resource in securing program participation. The credit union offers various type of loans, including fixed-rate, adjustable-rate and jumbo loans. The idea behind HARP is to move your current loan into a more affordable and stable loan under HARP in order to make it easier to maintain your residence.

By refinancing with a new Arizona State Credit Union loan, you might be able to extend the term of your loan and lower your monthly payment amount, making it more affordable to stay in your home. This benefit has the added advantage of allowing you to wait for home prices to rise, should you ultimately wish to sell.

Arizona State Credit Union is a GOBankingRates client.

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1 comment:

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