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FHFA, Fannie Mae and Freddie Mac Announce HARP Changes

According to the FHFA’s website, the Federal Housing Finance Agency will be lifting current restrictions to their Home Affordability Refinance Program (HARP). The HARP program is the Obama’s administration program that allows for home owners that are underwater on their homes to refinance their mortgages to take advantage of today’s extremely low interest rates. The official changes and rules set out by the FHFA are going to be forwarded to lending institutions by 15 Nov.

The changes include, but are not limited to the following:

Lifting the 125% loan-t0-value limit. Meaning, you can theoretically be underwater by 120K and still be eligible for a refinance.

Allowing for a lower-term mortgage without receiving a fee. Meaning, now one can refinance from a 30 year mortgage to a 15 year mortgage, in addition to taking advantage of historically low interest rates.

The rest of the news release can be read here: FHFA News Release [PDF], October 24, 2011

My biggest concern is whether the program will be extended to investment properties. I would love to refinance my property that’s located in Georgia. But it’s now a rental and has been the bane of my existence for 2 years now. Remember, My Mortgage Payments Pisses me Off!

In any case, if you think that you are eligible for the new HARP changes make sure you follow my website, or the FHFA’s website closely over the next month or two for the newest information.

Comments

  1. Fingers crossed for you (and many others).

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