How You Can Refinance Even If You’re Underwater

refinanceIf you’re like many homeowners you may have come to the realizations that you are currently underwater on your mortgage.  What you may be surprised to discover is that you may still be able to refinance your home at a rate that will help lower your monthly payments and allow you to hold onto your home.  This can be accomplished through the HARP refinancing program which was created to help homeowners who are underwater keep their homes.

The primary reason why so many homeowners have not considered refinancing their existing mortgage through HARP is that they believe they will not qualify.  But what many who take the time to investigate everything that the program has to offer is that they can qualify for the program no matter how underwater they currently are.  The program can also help those who own properties that they use as rentals, which many be surprised to know.  To find out if you qualify there are many online tools that can be used to help you determine your eligibility for the program.

To obtain an idea of whether or not you will qualify before visiting the website, you should first be able to answer these simple questions.  The first is, are you presently current on your mortgage payments.  This means that you cannot have any late payments within the past six months and no more than one late payment within the last 12 months.  The next bit of information that you will need to provide is whether the home you are going to refinance is your primary residence or an investment property that you rent out to others.  The next requirement that you must meet is that you closed on your home prior to May 31, 2009.

Many underwater homeowners tend to believe that the process is complicated and tedious; however it is much easier than you may think.  To begin the process you should contact the lender that you are currently working with.  For many homeowners, there is typically very little paperwork involved in the HARP refinancing program, so homeowners shouldn’t fear the large amount of paperwork that they had to deal with when they closed on their home at the time of purchase.  Another benefit associated with refinancing through this particular program is that homeowners will not be required to carry PMI or private mortgage insurance if they are currently not required to have it.

Homeowners should also keep in mind when shopping for a HARP loan is that not all lenders are participating in the program.  Before you contact a lender regarding HARP refinancing, it is important that you take a few minutes to look into lenders who are participating in the program.  While interest rates continue to remain low, they are beginning to creep back up which means that homeowners should act fast before they can no longer benefit from historically low interest rates.

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