Are you tired of hearing about low mortgage interest rates? You’re not alone. Many of us don’t have enough equity in our homes to refinance – thanks to falling home prices. Homeowners who are underwater need rate reductions more than anyone, but they’re finding it difficult to get them.
If you have a FNMA (Fannie Mae) or FHLMC (Freddie Mac) mortgage, and are current with your payments, there might be a way for you to get a lower rate. The Home Affordable Refinance Program (HARP) has been extended. This program was established in 2009 and is designed to assist people who cannot refinance with traditional mortgages because their property values are too low, and therefore do not meet underwriting qualifications.
There are guidelines that have to be met:
- The mortgage must be a Fannie or Freddie mortgage.
- The payment history must be current and not have any late payments in the recent past.
- You must live in the home. This does not apply to investment property.
- You must be able to afford the new payment.
- The new payment must be more affordable or more stable.
You may want to look into this program – especially if you have an adjustable mortgage and are planning on staying in your home. This is a great time to get that rate fixed. I don’t think they can go any lower.
You will need to discuss your individual circumstances with your lender to see if you qualify. Talk to your mortgage professional today! You never know when the rates will go up.