The government has started a new program called Home Affordable Refinance Program (HARP) for those people who are struggling to pay the monthly repayment on their home loan. The loan you have taken to buy your dream house seems to be more than the worth of your house. Then Home Affordable Refinance Program (HARP) is the right thing which can help you to save on your monthly mortgage payments. As of 2017 3 million underwater homeowners have saved an average of $2400 per year according to the Federal Housing Finance Agency.Federal Housing Finance Agency has started to replace the HARP program with a new HARP 2.0 with more strict qualifications for harp 2.0. It will help them to increase the number of benefited people from this program.So what is harp 2.0 loan program?The Federal Housing Finance Agency, along with Fannie Mae, announced that they are going to make multiple changes in the HARP to attract more borrowers who can benefit themselves by refinancing their mortgage through the programme.New changes in the programme will help more eligible borrowers who have shown acceptable payment history on their Fannie Mae mortgage loan but didn’t get accepted to refinance because of the value of their home.How to know if you are eligible for HARP 2.0?You can check it online form FNMA website. Remember that you have to enter the exact address as you have mentioned in your mortgage documents.What is new in HARP 2.0?HARP 2.0 is more based on your loan to value ratio. Fannie Mae and Freddie Mac programs have different names now. New ones are:Fannie Mae’s program changed to High Loan-to-Value Refinance Option.Freddie Mac’s program changed to Enhanced Relief Refinance.Other changes in the policies are:1. No longer needed for a new property appraisal.2. Elimination of risk-based fees such as the closing cost for people who refinance their short-term mortgages.3. Removing current 125% loan-to-value ceiling for fixed-rate mortgages (30 years or less) backed by Fannie Mae.4. People can refinance their second home or investment properties in the new program.Harp 2.0 eligibility requirements:1. Current loan-to-value ratio must be greater than 80%.2. Your mortgage must be owned or guaranteed by Fannie Mae.3. The mortgage must not be originated after May 31, 2009.4. There must be no delay in mortgage repayments in past 6-months and no more than one delay in monthly mortgage payment for last 12 months on your current mortgage.So now you know that how refinancing mortgage harp 2.0 can help you to save money on your monthly mortgage payments.


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