The Making Home Affordable (MHA) program is a key component of a comprehensive strategy of the administration to help homeowners avoid foreclosures and stabilize the housing market in the United States.
Homeowners who qualify can reduce monthly mortgage payments and have more stable loans with low interest rates. In addition, for those who no longer want or can’t maintain their housing, the program can offer solutions to avoid foreclosure. Finally, there are options for unemployed homeowners and homeowners who owe an amount greater than the value of their homes.
Who Is My “Administrator”?
Your administrator is the financial institution that charges monthly mortgage payments and is responsible for the administration and accounts for aspects of your loan. You may own your mortgage and talk to your administrator, although many investor’s loans belong to groups that hire loan servicers to interact with owners in their name.
Refinancing With HARP
Homeowners who qualify, and currently have mortgages but have been unable to take advantage of lower interest rates because the value of their homes has dropped, have the ability to do a refinance. Through HARP, Fannie Mae and Freddie Mac will allow you to refinance mortgage loans that they own or guarantee mortgage-backed securities.
Determine Who Your Loan Is Owned By
Contact the provider or the administrator of your mortgage. Both Fannie Mae and Freddie Mac have toll-free numbers and Internet consultation processes to access this data. Owners can enter information to determine whether any of these agencies owns or guaranteed their loan. Although his information does not constitute a guarantee that you will meet the requirements to qualify for HARP.
What Is the Purpose of the HARP Program?
HARP was created to help homeowners who owe more on the mortgage than what their home is worth or those who have economic difficulties trying to refinance their mortgages. The goal of a HARP refinance is to offer owners the opportunity to enter into a new mortgage with better terms.
Homeowners whose mortgage interest rates are much higher than the current market should see an immediate reduction in their payments. However, homeowners who are only paying interest, have a low initial rate and will have to pay a lump sum payment and they may not observe a reduction in their current payments if they have a refinancing rate and a fixed payment.
Saving Money By Reducing Interest
If this is the case, you can save a lot of money by reducing the amount of interest paid over the term of the loan. This will help you to have more money for other things and you can save a lot with this method.
Benefits of Refinancing
Refinancing a stable fixed rate loan to avoid future increases in mortgage payments is likely to improve the ability to meet your mortgage payments long term. When you submit a mortgage application, the lender will provide a “Good Faith Estimate” and a “Declaration of truthfulness credit”.
Chose Whether Or Not to Refinance
This will include a new interest rate, mortgage payment and the total amount paid during the term of the loan. Compare this with the terms of your current loan. If it is not better, it may not suit you to refinance.