Obama Home Loans Refinance Program

Even if your home is “underwater” you may be able to do a Home Loans Refinance and lower your monthly payments! The Obama Home Affordable Refinance Program (HARP) is a federal government program that enables homeowners with government-backed mortgages to refinance at today’s record low rates. Get qualified today!

HARP refinance is available from mortgage lenders. Most lenders are  able to offer the HARP program to homeowners who may have Mortgage Insurance on their existing mortgage.

Predatory lenders are still in the marketplace. These lenders usually prey on home buyers with less than perfect credit. They offer low or no down payments; however, the interest rates are extremely high. Additionally, these lenders often refuse to work with the homeowner should problems arise in the future.

Introduced in 2009, the program was designed to help homeowners who owed more than their home was worth to refinance into a lower monthly payment mortgage. The federal government broadened refinancing guidelines in November 2011 in order to make more homeowners eligible. Even those who did not qualify in the past might be eligible with today’s HARP:

HARP Refinance

• It is mostly for homeowners owe no more than 125 percent of their home’s worth was eliminated

Get your documents ready before you go to a mortgage lender. You should have an idea of the documents they will require, and if you don’t, you can ask ahead of time. Most mortgage lenders will want the same documents, so keep them together in a file folder or a neat stack

Remember that the interest rate isn’t the most important part of a mortgage. You also have to think about closing costs, points and other incidentals. There are different kinds of loan as well. That is why you have to find out as much as you can about what you’re eligible for.

• Your mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac

• You do not have an FHA, VA or USDA loan

• The current LTV ratio on your home loan must be greater than 80 percent

Knowing your credit score is important before trying to obtain a mortgage. The better your credit history and score, the easier it will be for you to get a mortgage. Examine your credit reports for any errors that might be unnecessarily lowering your score. In reality, to obtain a mortgage, your credit score should be 620 or higher.

• There must be no late mortgage payments in the past twelve months

• No more than one missed mortgage payment in the past 12 months

Are you eligible

Regardless of how much of a loan you’re pre-approved for, know how much you can afford to spend on a home. Write out your budget. Include all your known expenses and leave a little extra for unforeseeable expenses that may pop up. Do not buy a more expensive home than you can afford.

If have been unable to refinance because the value of your home has declined, you may be eligible to refinance through HARP. Fill out our EZ online home loan application to see if you qualify for a HARP refinance loan and get a personalized rate quote.

Organize your financial life

If your paperwork is all over the place and confusing, then you’ll just make the entire mortgage process that much longer. Do yourself and your lender a favor and put your financial papers in order prior to making any appointments.

Never take out a new loan or use your credit cards while waiting for your home mortgage to be approved. This simple mistake has the potential of keeping you from getting your home loan approved. Make sacrifices, if need be, to avoid charging anything to your credit cards. Also, ensure each payment is received before the due date.

The program hit a few initial stumbling blocks. In 2009, when President Barack Obama first announced his plan, he had estimated the initiative would help between 4 and 5 million homeowners attain lower monthly interest payments. However, up until November 2011, the program had only helped a few hundred thousand borrowers refinance their loans. This meant that the home loan program was probably not working.

The program was then rebranded HARP 2.0 after President Obama stated that they would be making key modifications to the program to help a significantly more homeowners. The changes announced in November 2011 included removing the 125 percent loan-to-value (LTV) cap placed on the kinds of mortgages that were previously eligible for a HARP loan. This meant that borrowers who had applied to refinance their mortgages under the original HARP guidelines, but were rejected, may now qualify.

Since the program was enacted in 2009, HARP loan rates have reached all-time average lows repeatedly. This means that many borrowers who have successfully refinanced their loans through HARP have seen their monthly payments reduced. The program is set to expire by December 2015.

Home Loans Refinance tips can save you big money. We are a HARP mortgage lender and can answer all your questions regarding the program. There also may be other options like an FHA home loan or Home Equity loan. Our mortgage experience will find the best solution for you.