What is a HARP mortgage?

A HARP mortgage is a Home Affordable Refinancing Program available to homeowners in California. This program was created as part of the federal government’s response to the financial crisis in 2008. It is used to help homeowners with mortgages backed by Fannie Mae or Freddie Mac refinance their home loan even if they have little or no equity in the property. HARP mortgages are usually used by people who are underwater or close to it. This means that the value of the loan is more than the value of the home. Without HARP, these homeowners would not be able to refinance. A HARP mortgage is designed to help reduce the monthly payment for the homeowner. It does this by allowing the homeowner to refinance their loan for a lower interest rate, longer term, or both. The homeowner is also allowed to roll closing costs into the loan. This reduces the amount of cash the homeowner needs upfront to refinance. Overall, a HARP mortgage is a great way to help homeowners in California who are underwater on their mortgages. With the help of the federal government, homeowners can lower their monthly payments and reduce their financial burden. In doing so, they can help ensure that they keep their home.

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What is a HARP mortgage?

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