In Need of Refinancing? Have You Heard of HARP? This program might help!

President Barack Obama announced on Monday that the government’s Home Affordable Refinance Program will be changed to allow homeowners with little or no equity to refinance no matter how much their home value has dropped below what they still owe. The program's acronym is HARP

1. What does HARP stand for? Home Affordable Refinance Program.

2. To qualify do I need 20 percent equity, like I currently need when refinancing? Borrowers do NOT need to have 20% equity in their home.

3. Does it matter how much negative equity my home has? Eligibility is not affected by how far the home value has fallen.

4. Refinancing is expensive, there are so many fees. Does HARP help with fees? Making refinancing cheaper, some fees such as closing, title insurance and lien processing will be eliminated or reduced. This also applies to some refinances that become shorter term loans than they originally were, once refinanced.

5. Do I have to pay for another appraisal? Not all refinances will require an appraisal.

6. Are all loans eligible? Eligibility is only for loans backed by Freddie Mac or Fannie Mae. The loan must have been acquired by either organization prior to June 2009. To find out if your loan was sold to Freddie Mac go to https://ww3.freddiemac.com/corporate/ or to see if it was acquired by Fannie Mae go to http://fanniemae.com/loanlookup/ .

7. What if I am late or not current with my mortgage? Home owners must be current on their mortgage and one late payment in six months or more than one in the past year allows the bank to determine the owner ineligible.

8. How long do I have to decide to try to refinance? The program is extended through 2013, by 18 months,

9. Does the bank “HAVE TO” refinance my loan if I am eligible? No this program is entirely voluntary on the part of the banks. The bank may refuse to refinance even if the home owner is eligible.

10. When will information be available about the program? Fannie and Freddie will issue the full details of the plan lenders on Nov. 15, 2011. Some lenders may be ready to participate in the program by December.

For more information, contact your lender to see if they will participate in the program. If so, you should consider your options regarding this program, to see if it works for you. You may save significant amounts of money over the years.