Standard Bank Blog

Has the value of your home declined? Have you been thinking you aren’t able to refinance because you owe more than your home is worth? We may have good news for you! You may be eligible to refinance through the HARP II (Home Affordable Refinance Program). Also known as the Making Home Affordable Program, HARP II, is designed to help you get a more affordable and stable mortgage.

In order to qualify for HARP II refinancing:

• Your existing loan must be a Fannie Mae or Freddie Mac originated loan
• You must have made the last 6 months of payments on time  
• No minimum credit score is required
• Only first mortgages are eligible; A Home Equity cannot be combined with a first mortgage, and no cash can be taken out  
• Primary residences, second homes and investment properties of 1-to-4 units are eligible
• Appraisal may or may not be required

We all see the ads for low mortgage rates and news articles advertising record low mortgage rates but what is a low mortgage rate?  Is it a good time to refinance your mortgage? Before you decide, you need to find out if a refinance will help you meet your financial goals sooner.  There is no cost to contact a mortgage professional and ask a few questions to find out if refinancing is right for you.  Just because it worked out for your neighbor or your best friend, your situation may not be the same.

When you refinance you are not necessarily paying off your loan any faster so if that is a major financial goal you may want to refinance into a shorter term.   Are you planning to move soon?  If so, you may decide that a refinance is not a good option at this time.