10 Questions You Need To Ask Your Mortgage Lender

Request these 10 questions and use the answers you have to choose whether to proceed with a mortgage lender. This is a really important step of the procedure and should not be dismissed. You should come to a prospective lender with a list of questions already ready. Don’t sign any documents until you’ve asked your questions, and had them answered satisfactorily!

Signing a mortgage is a massive commitment. You will need to be certain that you understand every part of the loan, what hidden charges will be involved, and what you are responsible for paying either now or later on. This list of 10 questions will help you tremendously in choosing your future creditor.  

  1. What’s the rate of interest for the mortgage?

    You will need to know precisely what you will be paying over the term of the loan so being mindful of the speed is obviously essential. Rates can change on a dime and you may not find a low rate if your credit is not up to snuff.

    To compare various lenders and their programs, request the yearly percentage rate (APR) of their mortgage interest that’s greater than the initial quoted speed since it encompasses all of the fees associated with the buying of a home and mortgage. Be cautious: firms advertise very low APR but are not really including all of the fees that have a house mortgage. You have to request the itemized breakdown of the charges and all of the charges, otherwise you might use a fake and unrealistic APR to make your choice.

  2. How many discount and origination points am I applying for? How much will I pay?

    Lenders can charge prepaid mortgage interest points which will decrease your interest rate but may have no real advantage to you general. You will need to know what type of points that these are and how much they want you to pay up front, so you don’t get the wool pulled over your eyes at the last second.


  3. What are the closing costs?

    The creditor and each the people involved in the transaction from start to finish have penalties you’ll have to pay. Determine what these will be from the beginning and include them in your calculations. Home mortgage lenders need to provide you a letter outlining what these final prices are going to be within 3 days of getting the loan program.


  4. When can I lock in the rate of interest and how much does that cost?

    Interest rates change every day, and you do not want it to switch between when you first apply and when you’re close. To prevent increases to your speed you may wish to lock in a rate and possibly points for a particular period. There could be lock in fees related to this activity, so you want to ask your own lenders. Try to ascertain what experts are forecasting that the prices are likely to do and read the Rate Trend indicator to find the best possible rate.


  5. Is there a prepayment penalty for this loan?

    Should you prepay in your loan there could be a penalty. Penalties can be 1 percent of the loan amount, or six months worth of interest. Some only apply when you decide to refinance or attempt to decrease the principal balance by over 20 percent. Some penalties apply if you attempt to sell your house before the mortgage is paid. Find out how long the punishment period lasts and how it’s calculated. Occasionally you will find reduced interest rates available to buyers that accept prepayment penalties.


  6. What is the minimum down payment I must make on this loan?

    Generally the down payment will be between 3 and 20 percent of your home price. The more money you have the ability to put down, the more you will have the ability to reduce your rate and the greater the conditions you will receive. If you can not pay 20 percent of the property’s value, you will typically be required to purchase private mortgage insurance.

  7. Can I qualify for this loan? What are the guidelines?

    To be eligible for a loan they’ll look at your income, employment, assets, liabilities and credit history. First-time buyer plans, VA loans and other government programs are offered for greater deals on mortgages and simpler eligibility guidelines compared to other loans, with a few of those programs offering zero percent down mortgages.

  8. What documents will I need to supply?

    Most home mortgage lenders require proof that you have an income and are going to want to check over your assets prior to accepting your loan. They can request other personal financial documents also. For those who have stellar credit, you might be eligible for a no-documentation loan however you’ll likely have to pay a much bigger down payment and a higher rate of interest.

  9. How long does it take to process the loan program?

    Unfortunately, obtaining a loan is rarely a fast procedure; when the mortgage market is doing well, as it’s doing now, underwriters have a good deal of software to process, verifications take more, and appraisals often move slowly. Most creditors tell you two weeks wait time,but the average amount of time for the application to be processed is 45 to 60 days. Therefore you’ll have to take that into account when you’re placing a limit on how long you need to lock in the rate of interest on your loan.

  10. Are there any foreseeable delays to the approval of this loan?

    If all goes according to plan and the program is completed with all the proper information, the home mortgage lender should be able to process your loan with no hitch. But when the underwriter finds credit problems, there might be delays. If you change jobs, have a change in wages, carry debt, or change your marital status in the time between when you submit and if your loan is funded, let your lender know!


These 10 questions will get you all the info you want to know to find the perfect home loan and choose the hemming and hawing from the procedure. This also enhances your attractiveness to the creditor since you will look more well informed and responsible throughout the procedure.

Source: Thinkstock/AlexRaths


5 Myths About Escrow Accounts

Escrow might make you uncomfortable, particularly if you’ve heard any bad myths about these kinds of accounts. Whether you are getting an escrow bank account or an escrow account mortgage, these are a few myths you ought to know before getting started.

Escrow accounts keep you from changing your home insurance.

Shifting your home insurance as you’re under a mortgage escrow account is remarkably straightforward. Though your cash is tied up in the mortgage account, you can contact your mortgage company and tell them you’re trying to make a change. All you will need to do is shop around for a new policy, and establish a start date. Then, call the company that controls your mortgage escrow account and notify them of this change. Make certain to have your loan amount, new policy amount, and the telephone number of your agent. Finally, call your previous policy and inform them you have made the change.

Shifting home insurance companies requires a sizable down payment.

Shifting home insurance with mortgage escrow account demands no money out-of-pocket. Your mortgage company controls mortgage escrow accounts, and the payments to your house insurance are created automatically. This means that if you change insurance companies, your mortgage company pays the premium from your account, so long as you have enough funds. It is always best to look at your mortgage escrow account until you change home insurance to be sure you have sufficient funds to cover the shift.

If you put 25% down on your house, you don’t require an escrow account.

If you put down 25% of your home’s mortgage, you might nevertheless be expected to begin an escrow account. Following the mortgage meltdown in 2009, lenders started to need an escrow account irrespective of how much cash you have for a down payment. Having an escrow account attached to your mortgage enables mortgage companies to offer your mortgage without difficulty. Irrespective of the amount you put down as a deposit, you may nevertheless be required to begin a mortgage escrow account.

It’s better to not have an escrow account and pay taxes and insurance on your own.

There are lots of benefits of paying your debts on your own, such as having complete control over your finances. But a mortgage escrow account might be a much better solution for people who have a tough time-saving money by themselves. A mortgage escrow account is included in your monthly payment and is regulated by your mortgage business. The business pays the insurance and property taxes, which means you don’t need to think about it.

The mortgage company is responsible for miscalculations.

From time to time, a mortgage company may make a mistake and not charge enough money for the mortgage escrow account. It follows that if a bill comes due, you may not have enough funds in the account to pay the price tag. Despite the fact that it was their error, you’re still responsible for the financing and the invoices. Not paying them on time could lead to late fees.


Overview of Home Equity Conversion Mortgage

Seniors that reside in a house can get money by preparing a reverse mortgage through the Federal Housing Administration (FHA). The Home Equity Conversion Mortgage (HECM) allows those who are 62 or older access to their home’s equity as long as they have paid off the majority or all their mortgage. This basic overview might help you know more about HECM.

How Does This Work?

An HECM takes the equity in your house and turns it into cash you can use for home improvements, debts, or whatever you desire. A borrower of an HECM does not need to make monthly payments to repay the loan unlike a conventional mortgage until they are no longer inhabiting the house as their principal residence. At that stage, the loan must be repaid, or the sum is taken in the equity of the house.

What Are the Eligibility Requirements?

As mentioned previously, the only folks that are eligible for this kind of loan are those age 62 or older. There are some additional requirements for example:

  • Own the property outright or paid-down a Substantial sum
  • Occupy the property as your main residence
  • Not be delinquent on any federal debt
  • Have financial resources to continue making timely payments of continuing property fees (such as property taxes, insurance, and Homeowner Association fees, etc.)
  • Participate in a customer information session given by a HUD-approved HECM counselor
  • Income, assets, monthly living expenses, and credit history will be confirmed
  • Timely payment of property taxes and hazard and flood insurance premiums will be confirmed
  • Single family home or two-to-four unit home with one unit occupied by the debtor
  • HUD-approved condo project
  • Manufactured home that meets FHA needs

HECM vs. Home Equity Loan

A home equity loan is a second mortgage which places another lien on your dwelling. Furthermore, a home equity loan requires monthly payments until the amount borrowed is repaid. An HECM doesn’t put another lien on your house, but a house with an HECM cannot be granted in an estate before the loan reverse mortgage is entirely paid. With a reverse mortgage, you’re expected to pay real estate taxes, utilities, and hazard and flood insurance premiums.

How Much Money Could You Get With an HECM?

The quantity of money you get is dependent upon multiple variables, making it impossible to ascertain how much you’ll receive for your dwelling. To begin with, it is dependent upon how much equity you have built in your property. Secondly, the age of the debtor is taken into consideration. Ultimately, the current interest rate determines how much money you may get together with your HECM. To find out more on home equity conversion mortgage, you may use the Department of Housing and Urban Development’s site to discover an FHA-approved creditor or to talk to an HECM counselor.


What is a Reverse Mortgage and How Does it Work?

Reverse mortgages are a home loan option for senior homeowners over age 62.

The loan enables homeowners to tap into the equity they’ve invested into their home through the years to cover unexpected expenses or increase their quality of living. The equity in the house is collateral for the loan. The balance isn’t due until the homeowner moves away or the residence is sold. No payments are owed on the loan so long as the homeowners are alive and residing in the house, rather, the homeowners get funds for their equity. The homeowner should continue to pay the taxes and insurance on the home.


So as to be eligible for a reverse mortgage, the house must be paid for or any exemptions have to be able to be compensated for with the loan. The total amount of loan money available is dependent upon several factors like the age of the homeowners, the current rate of interest, the value of the home and government limits. A reverse mortgage loan calculator will help determine the probable quantities of a loan taking into account these factors. The homeowner may select how the money from the loan will be obtained. The money can be taken in a lump sum amount, payments so long as the homeowner is within the house, payments based on a fixed term or setup as a credit line to be utilized as needed. A reverse mortgage loan calculator can help determine if a reverse mortgage is a viable option for homeowners or if the possibility of reverse mortgage issues outweighs the advantages.


The principal advantage of reverse mortgages is that the homeowner can still reside in the home and doesn’t risk foreclosure if the loan can’t be repaid. It’s easy to qualify for this sort of loan because there are no income or credit requirements. There are lots of flexible options to get the cash and there are no limitations on how the money may be used. Normally, the cash received in reverse mortgage a reversefree.


A reverse mortgage has many benefits over a traditional home equity loan or second mortgage. However, there are lots of situations that could lead to reverse mortgage issues. If the homeowner qualifies for specific non profit programs, then the cash received in reverse mortgages could disqualify them from valuable advantages. A reverse mortgages loan calculator can be used to determine optimum loan income. If the homeowner intends to market the home and proceed soon, then this sort of mortgage isn’t a fantastic option. The closing costs of the type of loan are higher than for other loans. Once the house is sold the loan must be repaid and the final costs incurred make it a costly short-term loan.

Another reverse mortgage problem is the reduction of the estate to prospective heirs because the equity of the house is reduced. The more reverse mortgages are held, the more interest is accrued over time decreasing the last equity in the house. Another possible reverse mortgage problem is if the value of the home increases, it’s not feasible to acquire a home equity loan if necessary. The reverse mortgage has to be the only loan on the house. Reverse mortgages might not be for everybody so homeowners should be well-informed and use a reverse mortgages loan calculator to help determine if this is a viable solution for increasing income.


Top 6 Most Common Mortgage Questions

You are applying for a mortgage and you feel overwhelmed by the acronyms, numbers, and terminology. You do not know where you should begin. Well, you are not alone. Nearly all people are almost entirely in the dark when it comes to the finer points of their mortgage arrangements and do not know what to ask when applying. For your own sake, bear in mind that no question is a dumb question when it comes to your finances, and you should feel comfortable asking your mortgage agent whatever you require.

Here’s a list of the most frequent questions about mortgages. Keep them in mind when searching for a mortgage so you can find the best price available.

How much can I afford when buying a home?

A general guideline is that you could search for homes that are two or three times your joint yearly household income, also keeping in mind your employment, credit, and debt history. There are loan programs for first time buyers so that you may have the ability to get something which you may have originally thought was out of your reach. You want to also consider how much you need to spend on a deposit.

What’s a fixed-rate loan versus an adjustable-rate loan?

A fixed-rate mortgage indicates that the interest rate to repay the mortgage remains the same until it’s paid off entirely — ie. The speed never changes no matter how the market fluctuates (down or up ). Within an adjustable-rate mortgage the interest will change occasionally as the index fluctuates — ie. if the housing market goes up or down, so does your rate. You can choose to go with the stable, predictable method of paying back the loan with a fixed-rate mortgage or you can research the advantages of an adjustable-rate Home Mortgage.   

What is an index and margin and how does this relate to adjustable-rate loans?

An index is an economic indicator that mortgage lenders use to ascertain what rate to charge in adjustable-rate mortgages. The rate of interest that is charged to the purchaser is usually the index rate and a pre-specified margin. Three popular indices will be the London InterBank Offering Rate (LIBOR), the Price Funds of the 11th District Federal Home (COFI), and the One-Year Treasury Bill.

Which mortgage should I choose?  

There’s no set answer for this question; it all depends on your particular financial situation. How long you plan to keep your home is a big element in which mortgage you need to select. Speak with a skilled and they can help you determine which loan package are the best match for you.

What constitutes my mortgage payments?

Typically a mortgage payment has three elements — the principal, interest, and taxes/insurance.

  • The Primary is only repaying the amount borrowed on the loan.
  • Interest is your interest accumulated on the loan.
  • Taxes & Insurance are often paid into a special escrow account, including things like hazard insurance and property taxes. If your lender doesn’t request it you need to pay the fees directly to the county tax assessor and property insurance provider.

How much money should I have available to buy a house?

Every situation is different, since there are quite a range of bundles and conditions you are able to end up with. Generally, however, you will need:

  • Earnest money: paid if you make an offer on the home, to show you are”in earnest” to buy
  • Down payment: A proportion of the expense of the house, due at settlement
  • Closing prices: costs related to the administration and paperwork required to buy or finance a home.


6 Tips When Buying and Selling Your Home in 2016

To help negotiate today’s real estate market and mortgage, here are six simple steps to buying and selling your home:

Use homebuyer programs

Use the programs specific to the neighborhood area that will help you buy your next home. Websites like HSH.com can offer tools to those house-hunting of their potential help on their own search. These assistance programs primarily target first-time buyers, offering support in terms of lower mortgage rates, buyer info/education lessons, or even help making down-payments. While fewer, you can find programs for homebuyers with a bit more experience too.

Mortgage pre-qualifications just don’t cut it

Know that mortgage pre-qualifications aren’t sufficient when purchasing your first house, as ideally, you need to be pre-approved. Pre-qualifications don’t ensure that your loan will be accepted. Further issues arise if You’re looking for the wrong house.   It’s crucial to set your budget initially, and know exactly how much you can and are willing to spend on your new mortgage. Not only can this save you cash, but it will also save you valuable time! Sellers can reject the deal you make, or request that you become pre-approved first.

Know mortgage terms

Learn mortgage lingo. It’s not just just confusing for a first time homeowner or buyer, but begin becoming able to differentiate the difference between a jumbo loan and a jumbo-conforming loan and also the many vexing mortgage terms here.

Have a homebuyer education course

Are you concerned about not having saved enough to make a deposit? Are credit problems stressing you out? Are you confused about how to start the process of actually purchasing a house? If you are a first time homebuyer, seriously consider taking a homebuyer education program. The benefits are substantial, assisting you to bridge this gap from renting to owning and putting to rest all of the pressing questions and concerns you might have about the procedure.

Rethink in which you want to live

Think about the commute. It’s not unusual that people want to chose to live in certain area to be closer to work. Folks make the conscious choice to live in a suburb or even the urban city area for assorted, legitimate reasons (i.e. to be closer to family, schooling, work, just personal preference).

Know the best times to market

Timing is everything when selling your residence. Not only is it important to have your home looking totally pristine inside and out when you’re trying to sell, but you also need to take under account the best time to sell it. Spring generally tends to be the ideal time to put your home on the marketplace, because of better weather inviting individuals to go out and look at homes.


5 Ways you Can Boost your Home Equity

Are you interested in selling your residence? Refinance? Just give your place a small spruce-up? Increasing your home’s value is essential for lots of reasons. By way of instance, higher home equity will make it possible for you to borrow additional money in case you apply for a home equity loan which can be used for home remodeling jobs, college tuition payments, and debt consolidation. Here are 5 surprising strategies to boost your equity.

1. Hire a Landscaper

Does the exterior of your house seem like a jungle? If you are afraid of losing your children beneath the foliage in your lawn, you should hire a landscaper. They can give the exterior of your house a facelift by planting grass, trees, shrubs, and flowers. Besides making your house more attractive to passersby, a landscaper can help you boost your home equity. This is particularly important if you intend to sell your house soon. If the exterior of your house is unattractive, prospective home buyers can run the other way before giving the interior a opportunity.

2. Buy New Appliances

Do your household appliances seem like they are straight from the 70’s? If your dishwasher and fridge have seen better days, elect for new energy saving appliances. Apart from saving money on your electric bill, you will increase the value of your dwelling. Many potential home buyers start looking for brand new stainless steel appliances throughout a house search. Boost your chances of selling your house for a fantastic price in the not too distant future and save on your invoice at exactly the exact same time, and you will impress the lender when applying for a home equity loan while you’re at it.

3. Update Your Lighting

Another terrific way to boost your home’s value is to upgrade your lighting. Many builders install builder’s grade lighting in new houses. Builder’s grade is never perfect. If your lighting is lackluster, put in a couple of stylish new fixtures like pendant lights in the kitchen, a chandelier in your foyerceiling fans in your sunroom.

4. Insert Closet Space

Many older homes tend to lack the amount of cupboard space home buyers prefer now. If you just have a couple modest closets in your house, consider building some excess storage space. It is typically not overly costly and you are almost sure to make your cash. Your home equity may increase and you’ll have organized spaces to store your possessions.

5. Double Your Mortgage Payments

Since home equity is calculated by subtracting the amount that you owe against the value of the house, the easiest way to improve your home equity is to double your mortgage payments to your lender monthly. You will also save money on the interest of your loan. Making bigger mortgage payments will permit you to quickly see your house equity growth and your liability reduction.

Boosting your home’s equity is among the first steps to building wealth. Really, you’ve got nothing to lose by raising your home equity. You will have a much more beautiful home which is going to be a breeze to sell in case you choose to move.


What Home Loan Program Options Are Out There?

For nearly as long as there have been home loans, there are home loan programs to help prospective and first-time home buyers purchase the home of their dreams. The recent drop in the market and, particularly, in the real estate marketplace has led to the creation of many more home loan programs offering specific aid to certain groups.

FHA Mortgage Loans

FHA loans (Federal Housing Administration) are government-insured loans administered by the U.S. Department of Housing and Urban Development (HUD). Although FHA loans are for everyone who meets the eligibility requirement, they are typically used by first-time home buyers due to their low down payments, lower rates of interest, and more lenient credit score requirements.

Homeowners can also do refinancing through FHA. FHA loans must meet up with the appraisal requirements and include a limit on how much the individual can borrow. The FHA offers several programs for home buyers.

  • Zero Down Payment Act
  • Potential homeowners who meet eligibility requirements for FHA loans but have trouble coming up with down payments might get help through this program. This program is for first-time house buyers. It differs from other down payment assistance programs in that, rather than supplying the money for down payments, the FHA will charge the borrower a higher insurance premium to make up the difference rather than having the down payment.
  • Energy Efficient Mortgage
  • Also offered through the FHA, this program offers financing for homeowners who wish to reduce their energy costs through the inclusion of energy-efficient products to their present or soon-to-be home. There’s no deposit required with this assistance program.

VA Loans

VA loans are government-guaranteed loans provided throughout the U.S. Department of Veterans Affairs, and they’re available for veterans and their spouses. The eligibility guidelines are more lenient than conventional mortgage loans and VA loans require no deposit. Like the FHA loan, VA loans have a cap on how much can be borrowed. Although lenders provide the initial financing, the VA guarantees payment in the event the borrower defaults on the loan.

RHS Loans

The U.S. Department of Agriculture Rural Development Housing & Community Facilities (RHS) is a home loan program that provides home financing for low-income people that are farmers or reside in rural areas. Besides offering financing for home purchases, the RHS also has programs for home renovation or repair.

ADDI Program

First-time home buyers that are interested in buying single family home and have trouble coming up with down payments could have the ability to receive help from the American Dream Down Payment Assistance Initiative program. This program offers assistance for purchasing a single-family house, condo, or a manufactured home. The borrower must have an income of less than 80 percent of their area’s median income.

Local Government Apps

Each state provides different mortgage programs. They vary from community to community and might contain low or no deposit, in addition to low-interest prices. Even though the financing comes from creditors, the applications are often government-sponsored. Prospective homebuyers should consult their regional government offices to find out about any available home loan programs.


Are you Eligible for HARP Refinancing

You might be considering refinancing your home for a vast array of reasons. You might choose to change to a fixed-rate mortgage as opposed to a variable-rate mortgage. You might be struggling financially and might want to reduce your payments or your rate of interest. Maybe you wish to execute a cash-out refinance and draw some money for investments. Perhaps you only need to repay your mortgage earlier.

These are potential opportunities which may be available for you via a federally mandated program called the Home Affordable Refinance Program (HARP). You may qualify for this program if you meet these requirements.

  • Present on Mortgage Payments To qualify for the HARP refinancing plan, you must be current on your mortgage payments. You must have been present for at least one year for consideration. If you’re not present in your monthly payments, then you might choose to seek out another recovery option. The HARP program is for men and women that have been denied conventional home refinance opportunities because of the value of their houses or other factors.
  • Freddie Mac or Fannie Mae Guarantee To qualify for the HARP program, you need to have a mortgage which either Freddie Mac or Fannie Mae owns or warranties. You can use a huge array of online tools to decide whether either Freddie Mac or Fannie Mae owns your loan. Moreover, you can contact the institutions directly.
  • Selling Date Prerequisites Your mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009, to quality. Loans which were bought after such a date aren’t eligible for this specific program.
  • No preceding HARP Registration To qualify for the HARP program, you shouldn’t have obtained previous refinancing throughout the HARP program. The one exception is if the loan has been refinanced through HARP between March and May of 2009.
  • Bank Participation The lender that issues your mortgage has to take part in the HARP refinancing program for you to be qualified. The quickest way to discover if your lender participates in the HARP program is by requesting a customer support representative. A brief telephone call to the lender will offer you the answer you will need to ascertain whether you will apply for HARP refinancing.
  • Loan-To-Value Ratio Your present loan-to-value ratio has to be greater than 80%. You may examine your original mortgage records or your current mortgage statement to discover such information.

Things to Do if You Are Eligible

If you think that you’re qualified for the HARP refinancing application, then your next step should be contacting a professional for your choices. Freddie Mac and Fannie Mae both have information on their websites regarding this program. Furthermore, you can call a certified home professional to inquire about how you can apply for HARP. A home specialist will take you through the appropriate channels so you can improve your own life and your credit standings.


HARP Refinancing: A History

The Home Affordable Refinance Program (HARP) is a U.S. national program that started in 2009. The intention of the HARP refinancing program is to assist struggling homeowners refinance their mortgages. The following is a brief history of HARP and the way the program continues today.

The Crisis

Following the U.S. housing bubble burst in 2007, homeowners found themselves in a challenging situation. Many saw the worth of the houses fall near or even below the value of their mortgages. Because banks took a loan-to-value ratio of 80 percent or less, many homeowners weren’t permitted to refinance with lower rates of interest.

By way of instance, imagine that a home was purchased for $160,000 but its value fell to $100,000 with the declining market. Now assume that the homeowner still owes $120,000 on the mortgage. In this scenario, the loan-to-value ratio is 120%. If the homeowner wanted to refinance their mortgage, she would also have to pay for private mortgage insurance. If they weren’t paying for private insurance, the additional cost could cancel out a lot of the benefits of refinancing, effectively prohibiting the homeowner out of refinancing their property.

Crisis Response

HARP was made in March 2009 to allow homeowners with loan-to-value ratios greater than 80 percent to refinance their mortgages. Originally only homeowners with ratios below 105% could be eligible, but this was later enlarged to 125%. In December 2011, the limit was abolished, allowing any individuals with adverse home equity and mortgages up to 30 years to refinance their mortgages.


Homeowners necessary to fulfill several criteria to qualify for HARP. First, their mortgages necessary to be guaranteed by Freddie Mac and or Fannie Mae. Since these organizations do not directly take care of the general public, many homeowners weren’t aware their mortgages were connected to these companies. The homeowners also had to be present on their loan, with no late payments within a six-month interval. Lastly, the homeowners should have profited from the refinancing with a lower monthly payment or a more secure product.

Since many lenders were reluctant to provide mortgage refinancing to homeowners with private insurance, HARP 2.0 was afterwards instituted. This allowed a homeowner to look for mortgage refinancing from any lender. HARP 2.0 also allows refinancing for all occupancy types. This means HARP now comprises the key household, a secondary house, or a rental house.

Recent Developments

In 2012, President Barack Obama said he desired to implement HARP 3.0. According to the program, responsible homeowners could have the opportunity to save approximately $3,000 a year in their home mortgages. The program is also expected to expand eligibility requirements for HARP benefits to homeowners that aren’t connected to Freddie Mac or Fannie Mae. Though still discussed, the program for HARP 3.0 hasn’t passed as of the writing of this article in May 2014.