HARP Just Extended to 2015

The Federal Housing Finance Agency today announced that borrowers with mortgages backed by Fannie Mae (FNMA) or Freddie Mac (FMCC) will have until the end of 2015 to obtain new loans under the Home Affordable Refinance Program (HARP).

HARP had been scheduled to expire at the end of 2013. This program allows borrowers to reduce their loan payments by refinancing at lower interest rates even if they are in homes that have lost value since the mortgage was originated.

To date, more than 2.2 million borrowers have used the HARP program. To meet the program’s qualifications, homeowners must be current on their payments and have loans that originated before June 1, 2009.

HARP is “a useful tool for reducing risk,” FHFA Acting Director Edward J. DeMarco said in a statement. “We are extending the program so more underwater borrowers can benefit from lower interest rates.”

The FHFA will soon begin a marketing campaign to expand the program’s reach to additional homeowners, DeMarco said in the statement. Some industry analysts estimate that as many as two million eligible borrowers haven’t taken advantage of HARP.

HARP loans began to surge last year and now account for almost a third of all refinancing applications, according to the Mortgage Bankers Association. Nearly 1.1 million borrowers used HARP last year alone, equaling the 1.1 million in the first three years of the program combined.

About a quarter of HARP loans have gone to borrowers who owe more than their properties are worth. In January, nearly half of HARP refinancings were for such underwater borrowers.

To see if you meet the requirements for refinancing through the HARP program, contact Indigo Mortgage in Albuquerque at 505-836-5700. Indigo Mortgage offers five mortgage divisions including Residential, VA Loans, Reverse Mortgages, Construction and Commercial. They are licensed by the Nationwide Mortgage Licensing System (NMLS #239924), and can provide loans anywhere in New Mexico.