Tuesday, January 10, 2012

KEntucky Home Affordable Refinance Program (HARP) - Freddie Mac

Home Affordable Kentucky Refinance Program (HARP) - Freddie Mac

Kentucky Home Affordable Refinance Program (HARP)
If Freddie Mac owns your mortgage and you are timely with your mortgage payments but unable to refinance because you have little or no equity in the home, you may be able to refinance to a lower interest rate or more stable mortgage through the federal Home Affordable Refinance Program (HARP). This program is designed for homeowners who have not been able to refinance due to a decline in the value of their home. Visit our secure Loan Look-up tool to see if Freddie Mac owns your loan.
Freddie Mac's implementation of HARP may help you obtain a monthly payment you can afford, and must result in one or more of the following:
A reduction in your interest rate and or your monthly principal and interest mortgage payment.
A fixed-rate mortgage in place of an adjustable-rate, interest-only, or balloon/reset mortgage.
A reduction in the term of your mortgage (e.g., from 30 years to 15 years).
View our list of the most frequently asked questions about this program.
Two Options
If your loan is owned by Freddie Mac, there are two options to help you if you are making timely mortgage payments, but have been unable to refinance due to declining property values:
Refinance through your existing lender (the company to which you send your monthly mortgage payments) if they are participating*. Since your lender already has the necessary files and documents, there are fewer requalification steps unless your principal and interest payment goes up more than 20 percent. No new appraisal is required in certain cases.
Refinance through a different participating lender. You may choose to pursue a refinance from a participating lender different than your existing lender. Because a different lender will not have your information or documents, they will need to requalify and re-underwrite your new loan. A new appraisal may not be required in certain cases.
General Eligibility Key Criteria
You may be eligible for HARP through your existing lender or a different participating lender if you owe more than 80 percent of the home's current value, and you:
Own a 1- to 4-unit home as your primary residence, a 1-unit second home, or a 1- to 4-unit investment property.
Are timely making your mortgage payments.
Choose a fixed-rate mortgage or an adjustable-rate mortgage for your new mortgage. For adjustable-rate mortgages only, you cannot finance more than 105 percent of your home's current value.
Choose a mortgage solution that can improve the long-term affordability or stability of your mortgage with the refinance.
If you have a Freddie Mac-owned mortgage and owe less than or equal to 80 percent of your current home's value, you may be eligible for other refinancing opportunities that offer many of the same benefits of HARP with different or additional requirements. Reach out to your lender to discuss the best refinancing option to fit your personal and financial needs.
Features of the New Mortgage
Mortgage insurance is not required if your existing mortgage does not have mortgage insurance, regardless of whether the loan-to-value ratio (ratio of the amount being borrowed to the market value of the property) is greater than 80 percent on the new mortgage.
Program Availability
If you are interested in refinancing your Freddie Mac-owned loan under HARP, there are many lenders who can help you. You should check with your existing lender to determine if they are participating in this program. If not, you may contact other lenders that participate to discuss your options and eligibility. Refer to our interactive map to find a list of participating lenders that conduct business in your area.
Next Steps
Contact your current lender.
Check to see if Freddie Mac owns your mortgage by using Freddie Mac's secure Loan Look-up tool.
The mortgage being refinanced must have been sold to Freddie Mac on or before May 31, 2009.
* This material is meant to provide general information about Freddie Mac's implementation of HARP and is not a comprehensive summary of the program. Specific additional terms, conditions, and limitations apply. Please contact your lender for more detailed information about the program and eligibility requirements. Also note that some servicers may choose not to offer these mortgages, or they may choose not to implement all of the flexibility available through the Home Affordable Refinance Program component of the changes.





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