HARP REFINANCE PROGRAM in MN, WI, SD
St Paul, MN: What is HARP? HARP stands for Home Affordable Refinance Program, an initiative from the Federal Housing Finance Agency (FHFA) to assist homeowners whose homes are now worth less than what they owe. And just recently, new enhancements to the program were announced, making refinancing options available again to an estimated one million more homeowners.
If you are a responsible homeowner but the current marketplace loan-to-value (LTV) requirements and need for a new appraisal have made it difficult or impossible for you to refinance at today's record low interest rates, Cambria Mortgage may be able to help you without needing a new appraisal or meeting previous LTV requirements.
The HARP "Home Affordable Refinance Program," is designed to help up to 9 million American families refinance their loans to a payment that is affordable now and into the future. This program is aimed at helping responsible homeowners "refinance" their loans to take advantage of historically low interest rates.
Here are some common Questions and Answers about the Refinancing Initiative in the program.
You may be eligible for a HARP 2.0 refinance in Minnesota, Wisconsin, or South Dakota if:
- The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
- The mortgage must have closed on or before May 31, 2009.
- The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
- The current loan-to-value (LTV) ratio must be greater than 80%
- The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.
If you answered YES to these questions, Click HERE to Apply for a HARP Refinance in MN, WI, or SD.
HARP 2.0 Refinance in Minnesota and Wisconsin FAQ
How do I know if my South Dakota, Minnesota or Wisconsin home loan is owned or controlled by Fannie Mae or Freddie Mac? Simple. Just click these links to check FANNIE MAE ownership or FREDDIE MAC ownership.
NOTE: Who you make your payments to is not necessarily who actually owns your loan.
I owe more than my St Paul home is worth. Do I still qualify to refinance under HARP 2.0? Yes. Eligible loans will include those where the first mortgage exceeds the current market value of the property.
If I am behind (delinquent) on my Minneapolis mortgage loan, do I still qualify for the HARP? No. But the good news is, you may qualify for the Modification Initiative. Contact me to discuss your situation and review your options.
I have a first and second mortgage. Do I still qualify to refinance under HARP Affordable Refinance program? Yes. Technically, the amount owed on the second mortgage doesn't matter, but the 2nd mortgage lender does need to agree to subordinate their loan. Talk to your Loan Officer about your second mortgage.
I have both a first and a second mortgage. Can I combine these into one new loan under the HARP program? NO. You can not combine these two (or more) loans into one. The HARP program will only refinance the existing first mortgage. Will refinancing lower my payments? That depends. If your interest rate is much higher than the current market rate, you would likely see an immediate reduction in your payment amount. However, if you are have an adjustable loan, or are paying interest only on your current mortgage, you may not see your payment go down. BUT... you will be able to avoid future mortgage payment increases and may save a great deal over the life of the loan.
What are HARP Refinance interest rates in MN, WI, or SD? The interest rate will be based on market rates at the time of the refinance. Currently, interest rates are at historical lows, which makes this a good time to examine your refinancing options.
Will refinancing reduce the amount that I owe on my St Paul home loan? No. A HARP refinance will not reduce the current balance. However, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.
Can I get some extra cash out to pay other debts? No. Only standard closing costs (appraisal, title, credit report, state taxes, lender fees, etc) may be included in the refinanced amount.
Are there closing costs on a HARP refinance? YES. HARP refinance loans have closing costs just like any other refinance. Like any refinance transactions, how you pay them can depend. You can pay the costs out-of-pocket, roll them into a slightly higher loan amount (most common), cover them with a slightly higher interest rate, or any combination of these options. Check with your Loan Officer, as there are a few restrictions.
I am really far underwater on my mortgages, can I still use HARP? YES. You can be really far underway and still qualify for HARP
What is the maximum HARP 2.0 loan amount in Minnesota, Wisconsin, or South Dakota? $417,000
I have a jumbo loan. Can I use HARP? The maximum loan amount is the same as the maximum loan amount in your area. For 95% of the country, this is currently $417,000
I heard adjustable mortgage refinances are different? YES. If you choose a new adjustable loan, you are capped at 105%. Only fixed rate refinance loans are unlimited.
My current loan is FHA, can I use HARP? No. Only loans that are backed by Fannie Mae or Freddie Mac are eligible. FHA loans, VA loans, USDA Rural Development, and many private loans are NOT currently eligible.
My current mortgage company says they are the only ones that can help me refinance with HARP. Is this true? Do I have to use my current lender? No. You can use any participating lender you want in the vast majority of cases.
I originally put down over 20%, so I have no PMI. Will I have to have PMI on the new loan? No. That is one of the best aspects of a HARP refinance. If the original loan did NOT have mortgage insurance, the new loan does not need mortgage insurance, not matter how underwater you are.
Can I refinance my Wisconsin vacation home or a rental property with HARP? YES. That is allowable. You just need to meet all the other standard Home Affordable Refinance program guidelines
How do I apply for the HARP (Home Affordable Refinance program?) Apply for HARP 2 Refinance just like any other loan.
It all starts with an application. We can take that in our office. You can call during normal business hours to (651) 55203681, or you can fill out the online mortgage application.