A smooth transition to a new refinance product has motivated the Federal Housing Finance Agency to extend the Home Affordable Refinance Program (HARP) until Sept. 30, 2017. This is great news for the more than 300,000 American homeowners who meet this program’s refinance criteria!
The new program set to replace HARP may also bring some good news to borrowers with high loan-to-value ratios who may be in need of some liquidity. Many high LTV borrowers didn’t have any refinance options after the latest housing crisis. Both HARP and this new program were created to assist responsible homeowners who, like many Americans, would like to take advantage of low interest rates, thereby reducing not only their monthly mortgage payments, but the exposure Fannie and Freddie would be taking on.
Though the new program is still almost a year away, the 300,000 homeowners who qualify for HARP’s extension should not be forgotten. Keep this program in mind as you discuss refinance options with homeowners who have minimal equity (typically less than 20 percent) in their homes, but have nevertheless been responsible borrowers. This might just be the break they’re looking for. Help them utilize this program before it’s gone!