Interest rates are at an all time low, and it is natural to want to take advantage of them. However, what do you do when you don't qualify for a typical refinance option? For example, what do you do if you owe more on your house than it is currently worth? There is a solution.
Enter the HARP refinance option. This is a refinance loan that was developed by the government, although the loan itself does not come from the government, and not all lenders participate in the program. Essentially, the HARP loans are available to help people who would otherwise qualify for refinance take advantage of the low interest rates.
The Obama refinance option was put into place to help home owners in a poor economy, to try to head off another round of foreclosures. However, you still have to have good credit and a mortgage in good standing in order to qualify for the refinance program. The only difference between a HARP loan and a regular refinance loan is that the value of your home does not matter with the Obama home affordable mortgage program. In addition, unlike with other refinance options, your mortgage must be owned or serviced by Freddie Mac or Fannie Mae to qualify for the program.
There are many reasons why you should go for a Home Affordable refinance now. First, there is no telling how long interest rates will stay as low as they are. You should act quickly to take advantage of them before they start going back up. Secondly, you will want to make sure that you get your payments lowered as quickly as possible. Everyone can use some extra money in their budget in this economy, right?
Another reason you should go for the Home Affordable Refinance Program now is that the program was designed to help people in this economy. The program may not be around forever, so it is important to take advantage of it while you still can. This program was put into place to reward home owners like you who stayed in their homes even when it was no longer in their best financial interests to do so. Take that reward as quickly as you can, and save yourself a ton of money in interest. The more quickly you take advantage of the program, the more money you will save.
If you are facing not being able to make your mortgage payments, it is even more important that you act right away to get in on the Obama mortgage reduction program. You must be current on your payments with a good payment history to qualify for this program. Therefore, at the first sign of trouble you should immediately contact a lender to see if you can take advantage of this refinance loan option.
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