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June 25, 2012

Underwater Homeowners Refinancing with HARP

Category: Financial News,Home Refinance Tips – admin – 10:23 am

American homeowners continue to seek refinancing solutions from the new HARP refinance and the streamline program, but will this help the housing crisis disappear? A recent report issued by the Federal Reserve indicates that U.S. households lost 38.8% of their wealth between 2007 and 2010, the largest drop since 1989. Although the Federal Reserve indicates the losses in financial assets and businesses as contributing to diminished net worth, the central banker targets declining house prices as the primary cause.

The bleak housing news comes as no surprise to borrowers that have been struggling to refinance their underwater loans. One of the few positive opportunities in this era of housing woes is that homeowners are starting taking advantage of the Obama’s foreclosure prevention programs, including the Home Affordable Refinance Program. This is a government relief measure that is sponsored by Fannie Mae and Freddie Mac.

FHA and HARP Refinancing Look to Help Struggling Homeowners

The recently revamped HARP 2.0 enables homeowners to refinance without regard for current home value, which enables qualified “underwater” homeowners refinance to today’s low mortgage rates. According to the Mortgage Bankers Association, the HARP refinances are soaring in popularity.

Meanwhile, he Federal Housing Administration doesn’t want its’ customers to be left out with underwater mortgages so they too have eased their guidelines on the streamline program. The FHA streamline loan program now features reduced upfront mortgage insurance premiums for homeowners that choose to refinance their existing FHA home loans that were originated prior to June 1, 2009.  If you are a homeowner that has been unable to refinance because your home loans are “underwater”, then consider the Streamline or HARP refinance because they may provide the best option to reduce your interest rate and monthly housing payments.

Take a minute and get a free loan quote from lenders that will uncover your refinancing eligibilities today.

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