Are you underwater on your mortgage? Could you use extra money in your pocket? If so, then look to the Home Affordable Refinance Program (HARP) to refinance your mortgage.
The federal government launched HARP in 2009 so eligible homeowners with mortgages owned by Freddie Mac or Fannie Mae could save money by refinancing into lower interest rate loans despite a drop in the value of their home.
Get the Facts and Act Fast:
HARP expires in 189 Days.
HARP has helped over 3.4 million homeowners save an average of $2,400 in the first year after refinancing – and it can help you save too, by:
- lowering the interest rate on your mortgage when you refinance into a loan with the same maturity (say 30 years).
- refinancing your fixed–rate mortgage, or a loan with a variable rate, into a fixed–rate loan with a shorter term (such as 15 years). A shorter term coupled with a lower interest rate can help you build equity faster and save a considerable amount of interest over the life of your loan.
Either way, the extra cash you may save through HARP can put you in better position to pay down debts, build up your savings, and free up cash for new purchases.
Despite HARP's saving potential, it's estimated there are hundreds of thousands of potentially eligible borrowers who could save money through the program, but have yet to apply. What's more, the program ends December 31, 2016, so act now, before it's too late.
Follow this series to learn more about HARP and the benefits it can provide.
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