Michael Kraus asked:




For much of the past year, mortgage rates have been at or near record low points. Unfortunately, many homeowners have been unable to take advantage of these rates due to declining home equity. Many homes have lost significant amounts of value since the housing market peaked in 2006. As a result, many homeowners now owe more on their mortgage than their home is worth (this condition is known as being “underwater” or “upside-down” on one’s mortgage). Homeowners who lack equity in their homes are frequently unable to meet the loan-to-value (LTV) ratios required by lenders in order to refinance their mortgages. These borrowers may be missing out on thousands of dollars worth of savings.

In response to this situation, the government created the Home Affordable Refinance Program (HARP). HARP was designed to allow homeowners with little to no home equity to refinance into lower mortgage rates. HARP loans are available to borrowers with LTVs of as much as 125 percent, although the maximum LTV it varies by lender.

Some of the eligibility requirements for HARP are:

• The borrower’s mortgage must be owned by Fannie Mae or Freddie Mac
• The home must be the borrower’s primary residence
• The borrower must be current on their mortgage with no late payments in the last 12 month period
• The new loan must lower the borrower’s monthly payments

For a complete listing of the HARP eligibility requirements, check out the Making Home Affordable Webpage here.

The HARP loan program has been extended through June 11, 2011.

Tracy

Tacity asked:


My husband and I are in our 30s. We have a mortgage that is unbearable but we have manage to make the payment for the three years that we have had the home on-time. Our employment status has changed and my husband is the only one working. Our home value is less than the balance we have. We have good credit. Is there a loan program that can help us reduce our payment/rate? Our rate is currently at 11%. Are there any programs for minorities? Lastly, our mortgage is with HFC and they are dissolving but there mother company is HSBC. I called them re: the President’s Home Affordability Plan that was announced on 3/2/09. Per the website, I should qualify, but HFC said that they did not have any info on this yet and I would have to wait but it looks like I would not qualify. That does not seem right.
I hope this makes sense.
I would greatly appreciate some real help.
we purchased the house for 143,900 now the house is worth 135,000 and our loan balance is 151,000.

ARMAND