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How to Lower Your Mortgage Payments
Special to The Truth
Are you a homeowner who is
current on your mortgage and looking to lower your interest
rate? Alternatively, would you like to shorten your mortgage
term and build equity faster?
You may be able to take
advantage of a long standing federal program to save
hundreds of dollars on your mortgage payment every month or
shorten your mortgage term and save money in the long run.
The Home Affordable
Refinance Program (HARP) is a unique program that helps
certain homeowners refinance their mortgage to a more
affordable monthly payment and at better terms. With HARP
now extended through December 2016, homeowners across the
country have more time to take advantage of this program to
save money every month.
If you purchased a home
before June 2009, have little or no equity in your home but
are current on your mortgage payment (meaning no 30-day-plus
late payments in the last six months and no more than one in
the past 12 months), and the loan is owned by Freddie Mac or
Fannie Mae, you may be eligible to refinance your mortgage
through HARP.
More than 3.3 million
Americans have taken advantage of HARP since 2009, saving
them $200 on average per month. Here’s how you can take
advantage of this program:
• Gather your basic
financial information before you contact your mortgage
company. You’ll need: Your latest mortgage statements,
including information on a second mortgage (if applicable);
and your current income details (paystub or income tax
return).
• Find out if Fannie Mae
or Freddie Mac owns your loan. In order to qualify for HARP,
your loan must be owned by Fannie Mae or Freddie Mac.
Contact your mortgage company or visit
www.knowyouroptions.com/loanlookup or
https://ww3.freddiemac.com/loanlookup/.
If your loan is owned by
Fannie Mae or Freddie Mac, ask your lender if it is an
approved HARP lender. Be prepared to provide the information
necessary to verify your current source of income. If your
lender is not an approved HARP lender, find out who is near
you on the Fannie Mae and Freddie Mac websites.
• Go through the
application, approval and closing process. If your lender
determines you qualify for HARP, they will guide you through
the process.
HARP has no appraisal
requirements or loan-to-value limits, so you can apply
regardless of how far your home may have fallen in value.
Without this program, qualifying for refinancing can be
virtually impossible for homeowners who are underwater.
Remember, the opportunity
to get a HARP refinance expires December 31, 2016 and there
is still time to take advantage of low mortgage rates.
Make 2015 the year you
take the step to save money on your home loan. Call your
lender to apply now and begin to save. For more information,
visit www.HARP.gov.
Courtesy StatePoint
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