Save money if your mortgage is upside down
Did you know the government has a way to help homeowners who are currently upside in their mortgages? Home Affordable Refinance Program (HARP-2) is a federal program of the United States, set up by the Federal Housing Finance Agency in March 2009 to help underwater and near-underwater homeowners refinance their mortgages. Unlike the Home Affordable Modification Program (HAMP), which aims to assist homeowners who are in danger of foreclosure, this program targets homeowners who are current on their monthly mortgage payments but are unable to refinance due to dropping home prices in the wake of the U.S. housing market correction.
The HARP-2 mortgage refinance is a great way to try and save some money or time off your existing conventional mortgage. There are a few stipulations when it comes to this new mortgage option. You must be upside down in your current mortgage but have 12 months of consecutive on-time payments, and your mortgage must also be held through Fanny Mae or Freddy Mac.
Not sure if you qualify for this program? The mortgage consultant for Rockford Community Federal Credit Union, Ed Ross, said, “This program is an excellent opportunity for people who cannot take advantage of today’s rates. We have had a chance to help many members of the credit union live more comfortably by adjusting their mortgage. You do not need to be a current credit union member for us to take a look at your mortgage. It’s worth the phone call, as we can quickly find out if this HARP-2 mortgage is a good fit for you.”