Real Estate Market

HARP loans jump to 20 percent of Fannie, Freddie refis; 2012 HARP refis already exceed 2011 HARP refis

(7/26/2012) - The new and improved, so-called "HARP 2.0" is paying off.

Imagine what a difference HARP 3.0 would make.

One in five Fannie Mae and Freddie Mac refinances were refinanced through the Home Affordable Refinance Program (HARP) in May, the largest share since HARP's inception back in 2009.

Attribute the jump to low mortgage interest rates and the upgrade to HARP 2.0 which allowed more underwater homeowners to take advantage of an Obama Administration's Making Home Affordable program.

The Federal Housing Finance Agency's (FHFA) latest "Refinance Report" also said low mortgage rates were responsible for 78,000 HARP refinanced mortgages during the first five months of this year - more than the total for all of 2011.

In May, borrowers with greater than a 105 percent LTV accounted for nearly one third of HARP volume.

HARP upgrades are particularly paying off for homeowners in states hardest hit by the housing crisis.

HARP refinances represented over 40 percent of total refinances in Nevada, Arizona, Michigan and Florida, compared to 20 percent nationwide. Underwater borrowers represented more than half of HARP volume in Nevada and Arizona and 40 to 50 percent of HARP refinances in Florida, Idaho and California.

"These numbers show HARP 2.0 is accomplishing the goals set forth - to provide relief to borrowers who might otherwise be unable to refinance due to house price declines," said FHFA Acting Director Edward J. DeMarco.

"Borrowers with Fannie Mae- or Freddie Mac-backed loans, who are current on their underwater mortgages are taking advantage of the opportunity offered by HARP 2.0," DeMarco added.

FHFA also said an increasing number of homeowners are using record low mortgage rates in the 3.5 percent- and lower-range to hedge their bets with shorter-term 15- and 20-year mortgages, which build equity faster than 30-year mortgages.

Greater HARP improvements in the works would also help even more homeowners who don't hold Fannie and Freddie loans.

HARP 2.0 enhancements

HARP became HARP 2.0 earlier this year with a round of enhancements, including:

• Eliminating some risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for others.

• Removing the 125 percent loan-to-value (LTV) ratio ceiling for fixed-rate mortgages.

• Waiving certain representations and warranties that lenders commit to when making loans guaranteed by Fannie or Freddie.

• Eliminating a new property appraisal when there is a automated valuation model (AVM) available.

How to play HARP

To be eligible for a HARP refinance, before the program expires on Dec. 31, 2013:

• Your mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac.

• Your loan must have been delivered to Fannie or Freddie on or before May 31, 2009.

• Your current LTV ratio must be greater tan 80 percent.

• You must be current on your mortgage, but are allowed one late payment in the past 12 months, so long as the late payment did not occur in the six months prior to the refinance.

Refinance at Today's Low Rates!


Follow the link to continue reading the related articles

Making Home Affordable: How are Federal Mortgage Assistance Programs Faring?

Mortgage modification savings help create better borrowers

Power of counseling saves struggling homeowners $175 a month

Mortgage relief programs seen as assistance of last resort

Mortgage pundits abuzz with HARP 3.0 rumors

HARP, FHA boost refinancing, FHA purchases down







Fannie Mae & Jumbo Mortgage Rates

Just One Click! = Current Rate Chart

Pennsylvania Mortgage Rates Current Mortgage Rates - Hawaii Current Mortgage Rates - Alaska West Virginia Mortgage Rates Virginia Mortgage Rates District of Columbia Mortgage Rates Maryland Mortgage Rates Delaware Mortgage Rates New Jersey Mortgage Rates Connecticut Mortgage Rates Rhode Island Mortgage Rates Massachusetts Mortgage Rates New Hampshire Mortgage Rates Vermont Mortgage Rates New Hampshire Mortgage Rates Maine Current Mortgage Rates Vermont Mortgage Rates Current Mortgage Rates - New York Current Mortgage Rates - Michigan Current Interest Rates - Wisconsin Current Mortgage Rates - MINNESOTA Ohio Mortgage Rates Current Mortgage Rates - Kentucky Current Mortgage Rates - Indiana Illinois - Current Mortgage Rates Current Mortgage Rates - Iowa Missouri Mortgage Rates Current Mortgage Rates - North Carolina South Carolina Mortgage Rates Current Mortgage Rates - Florida Current Mortgage Rates - Georgia Current Mortgage Rates - Tennessee Current Mortgage Rates - Alabama Current Mortgage Rates - Mississippi Current Mortgage Rates - Louisiana Current Mortgage Rates - Arkansas Current Mortgage Rates - Oklahoma Current Mortgage Rates - TEXAS Current Mortgage Rates - New Mexico Current Mortgage Rates - Arizona Current Mortgage Rates - Kansas Current Mortgage Rates - Nebraska Current Mortgage Rates - Colorado Current Mortgage Rates - Wyoming South Dakota Mortgage Rates Current Mortgage Rates - North Dakota Current Rates - Montana Idaho Current Rates Washington Mortgage Rates Current Mortgage Rates - Oregon Current Mortgage Rates - Utah Current Mortgage Rates - Nevada Current Mortgage Rates - California

Start by selecting your state

Get the Updated and Improved Mortgage Rates App from

iPad for Mortgage Rates

Real Estate Market News

Refinancing: Selecting a Loan

Moving Ahead With Your Refinance