How a Genius Pays Their Mortgage
Are you looking to refinance your home? Have you had trouble finding a program that suites your needs? If you answered yes to both of these questions, then the Tulsa movers want you to know about the Home Affordable Refinance Plan, or HARP. HARP was designed for middle-class homeowners looking to reduce their monthly mortgage payments by allowing them to refinance their home at a lower mortgage rate.
If you qualify, the program will help you get a more affordable and stable mortgage payment plan. More than 2.5 million homeowners have lowered their interest rate with HARP, and the program has helped save an average of 35% annually on homeowners’ mortgages.
Before you look into HARP eligibility, you should decide if refinancing is the right option for you. There are several factors to consider:
- Do you have enough equity in your home?
- What will the closing costs be to refinance?
- Will lowering your interest rate cover the closing costs to refinance?
- Will you be ok with the number of years the refinancing plan will add to your mortgage’s lifetime?
If refinancing is the right option for you, then you should seriously consider HARP. Homeowners should take advantage of this federal program now, since this opportunity is only available for a limited time and expires at the end of 2015.
HARP has also relaxed several of its requirements, like minimum credit scores and equity requirements. This makes it more likely that you’d be approved. Additionally, if your mortgage is less than $625,000, it is very likely that you would qualify. If you have tried to get your home refinanced in the past and were denied, you should absolutely try again through HARP, since home values have risen and requirements are more lenient.
To help figure out your eligibility, see if you fit the below criteria:
- Your mortgage is owned or ensured by Fannie Mae or Freddie Mac
- Your mortgage was sold to the above lenders before May 31, 2009
- Your current loan-to-value ratio is more than 80%
- You are current on your mortgage at the time of refinancing, with no late payments in the last six months and only one late payment in the last 12 months
- Refinancing will improve your loan’s affordability
You will generally have to fulfill the above qualifications to qualify for HARP, but if you don’t, you should still contact your servicer to see if you can get a modification.
Lowering your monthly mortgage payments will require a lower interest rate. And where would you find available lower interest rates? Sites like Bills.com, with The Easy Loan Site lets homeowners compare available mortgage rates. It is a very valuable tool if you are looking to lower your interest rate or refinance your home.
Mortgage rates under HARP are near a 20-month low. If your mortgage is above the current market rate, you should take advantage of HARP’s benefits as soon as possible, since you do not have much time left to figure out the right move for your Tulsa home.