Here is an article about the federal government’s program to
help people refinance rather than default on their mortgages. Try it, you’ll like it…IF a strategic default is too scary for
you. It’s called the Home Affordable Refinance Program.
“Nearly 99,000 homeowners refinanced their mortgages in August
through the Home Affordable Refinance Program (HARP), according to a new report
released by the Federal Housing
Finance Agency (FHFA) Tuesday.
According to FHFA, HARP is on target to reach a million borrowers in 2012. The agency attributes the continued
high volume of HARP refinances to record-low mortgage rates and program enhancements that included the elimination of its maximum loan-to-value (LTV) ratio limit.
Fannie Mae and Freddie Mac loans refinanced through HARP accounted
for nearly one-quarter of all refinances in August, 24 percent to be exact. In
states hard-hit by the housing downturn–-Nevada, Arizona, and Florida–-HARP refinances represented
nearly half or more of total refis during the month.
HARP refinances for borrowers with LTV ratios greater than 105
percent accounted for more than 70 percent of HARP volume in Nevada, Arizona,
and Florida and more than 60 percent of the HARP refinances in Idaho and
California. Nationwide, LTV ratios above 105 percent characterized more than
half of new HARP loans made in August.
FHFA also noted in its report that nearly 18 percent of HARP
refinances for underwater borrowers were for shorter-term 15- and 20-year
mortgages in August. By reducing their mortgage terms, these borrowers will be
able to build equity faster.
Since the program’s inception in 2009, FHFA reports, Fannie Mae
and Freddie Mac have financed more than 1.6 million loans through HARP.”
By Carrie Bay-dsnews.com
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