Thinking about doing a HARP® Refinance with Bank of America? You are not alone. The HARP® refinance program has been one of the most popular refinance programs since it was introduced in March of 2009 (and it recently has been extended until 2015).
Announced in March 2009, HARP® is a federal government program designed to help 5 million underwater or near-underwater homeowners refinance into a fixed loan with a lower monthly payment. However, as of Aug. 31, only 894,000 borrowers have refinanced through HARP®. On Oct. 24, 2011, President Obama announced an overhaul to the HARP® program with the intent of reaching more underwater homeowners. The expanded HARP® program – also referred to as HARP® 2.0 – will take effect on December 1, 2011 for borrowers with a loan-to-value ratio of less than 125 percent and in the first quarter of 2012 for borrowers with a loan-to-value ratio of greater than 125 percent.
Bank of America: Do They Really Own Your Loan?
Just because Bank of America is who you make your mortgage payment to doesn’t mean that they actually own your loan – they may just be servicing it. In order to be eligible for the HARP® refinance if your loan is owned by Bank of America, you need to first find out who owns your loan.
In order to be eligible for the HARP® program, your loan must be backed by Fannie Mae or Freddie Mac. Both have tools on their websites to see if they own your loan. To see if either one holds your mortgage, you can check Fannie Mae. If they don’t have your mortgage there, then check Freddie Mac.
Once you determine if Fannie Mae or Freddie Mac own your loan, the next step is to find a lender who can give you a quote on a HARP® refinance.
The Best Way to Save Money on a HARP® Refinance
The best way to save money on a HARP® refinance if Bank of America is who you currently make your payment to and Fannie or Freddie own your loan is to shop multiple lenders. Just because Bank of America currently services your loan doesn’t mean that you have to use them for your HARP® refinance. Get multiple quotes from multiple lenders and you might be surprised at how much you can save.
Get a free HARP® quote if your loan is serviced by Bank of America but backed by Fannie Mae or Freddie Mac today and start down the road of saving money!Click to See the Latest Mortgage Rates»