5 Benefits of
The Home
Affordable
Refinance
Program (HARP)
Lower Monthly Payment
HARP stands for Home Affordable Refinance
Program. It is a mortgage program with several
benefits. For starters, monthly payments are
lower with this mortgage. Consider this – your
house of $80,000 underwater and your interest
rate is 5.875%. If the refinance rates of HARP
lowers your interest rate to 4%, you will save
$500 every month.
Lower Interest Rate
The refinance rates of HARP are generally
comparable to other mortgages. However, if your
loan is old enough to be eligible for this program,
there is a chance of today’s rates being much
lower than the one you currently have. This
reduction in the interest rate can help you save a
significant amount of cash.
Fixed-Rate Mortgage
HARP mortgage loan allows you to refinance into
fixed-rate mortgages with terms from 10 to 30
years. Refinancing may prove instrumental in
avoiding a large payment increase that comes when
the initial period of your ARM ends and your
interest rate increases. Changing from an
adjustable-rate mortgage to a fixed-rate mortgage
will give you peace of mind because your payments
will be the same every month.
Build Equity Faster
You get to build equity faster with a HARP
mortgage loan because it is a short-term
mortgage. Such a mortgage lets you pay down
the loan faster than a conventional 30-year
mortgage. Interest rates are usually lower on
shorter-term mortgages than 30-year mortgages,
making monthly payments manageable.
Skip Appraisal
The HARP loan program facilitates faster
processing and less paperwork than traditional
mortgage loan programs. How does this benefit
you? Well, you can apply for HARP without
undertaking a home appraisal!
Thank You
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