We can think of four great reasons that you should refinance your home under HARP 2.0:

  1. Many people had complaints about the original HARP program set up in 2009. For one thing, HARP capped the amount of the loan at 125% of home value. For homeowners seriously underwater on their loans, this was a problem. In addition, some lenders imposed a cap even lower than the 125% stipulated by HARP. When HARP didn't turn out the popular program it envisioned, the Federal Housing Finance Agency revised the program in 2011 and HARP 2.0 took its place in the mortgage world. The 125% cap on loan to home value no longer applies.
  2. One of the incentives the Federal Housing Finance Agency included to entice lenders to participate in HARP 2.0 was by providing a shield so that refinance lenders would not be responsible for any fraud that had occurred in making the original loan. This made more lenders willing to make HARP 2.0 loans.
  3. Many homeowners who found themselves underwater have mortgage insurance as part of their original loan package. Known as PMI, mortgage insurance made loans under HARP difficult to refinance with the original mortgagor because the lenders had to provide the same level of PMI as the original loan. HARP 2.0 allows homeowners with PMI to refinance with any lender.
  4. HARP 2.0 has no minimum credit score requirement for borrowers. HARP 2.0 does require lenders to document and verify income, employment and credit history.
To summarize, if you have a Fannie Mae or Freddie Mac loan taken out before May 31, 2009, are current on your mortgage payments (no late payments in last six months or one in 12 months), your current loan to value ratio is more than 80%, and refinancing would reduce your monthly payment amount or move you from a less stable loan type (such as an adjustable ARM to fixed), then you are eligible for HARP 2.0.

One caveat: You must hurry because HARP 2.0 ends on December 31, 2015.

For more information or questions about refinancing,
Please visit  http://www.mhlmtg.com/ecamp/harp20_1127fb

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