HARP What is it? How can it help you?

HARP stands for Homeowner's Affordability Relief Program. It is part of the Obama Administrations effort to free up the credit markets. Here is how it may help you. If you purchased or refinanced your home prior to March 2009 and your loan did not have private mortgage insurance (PMI), and your loan is owned by Fannie Mae or Freddie Mac, then you may be eligible to refinance your home under this program without PMI even if your home has declined in value. To clarify Fannie Mae and Freddie Mac guidelines require PMI on the loan when the LTV (loan to value) exceeds 80% of the appraised value of the home. In the past many homeowners who wanted to refinance and take advantage of today's lower rates discovered that their home had declined in value to the point where it exceeded the 80% LTV limit, so the new loan required PMI. The monthly cost of the PMI negated any savings the homeowner realized through their rate reduction, so there was no benefit in refinancing. Now under this program the homeowner can refinance with a LTV of up to 105% without PMI, if their existing loan does not have PMI. This is of great benefit to the homeowner. To find out if your loan is owned by Fannie Mae go to http://.loanlookup.fanniemae.com To find out if your loan is owned by Freddie Mac go to https://ww3.freddiemac.com If you have a second, there is no CLTV (combined loan to value) limit, so you may still be eligible. The catch is that the servicer on your second would need to agree to subordinate their postion to the new first. There are thousands who have been able to take advantage of today's low rates through this program. Contact me for more information.