Many people are searching for more information about the “Obama Refinance Program in 2013” and based on the amount of media coverage of President Obama talking about refinancing their homes – it’s no wonder why.
But is there a refinance program called the “Obama Refinance Program”?
But unofficially, the Home Affordable Refinance Program® first announced by President Obama in 2009 has got the nickname “The Obama Refinance” for many people across America who are searching for more information.
The Obama Refinance Program: HARP® Refinance
The HARP® refinance program was designed for homeowners who owe more on their house than it is worth due to falling real estate values to be able to take advantage of lower interest rates and refinance and save money. Highlights and some general lender guidelines of the HARP® / Obama refinance program include:
- Current mortgage must have been obtained before May, 31, 2009.
- Some lenders have loan to value restrictions, some don’t
- Some lenders have minimum credit score requirements, some don’t
- Some lenders may wave a required appraisal
- 1-4 Family Primary Residence, Second Home, 1-2 Family Non-Owner Occupied, and Condominiums & PUDs are eligible
- Private Mortgage Insurance transfers are allowed with certain mortgage insurance companies
- Most lenders will require that subordinate liens (second mortgages) be re-subordinated
- Most lenders require no late payments in the last 12 months
- Most lenders will not allow a bankruptcy or foreclosure in the last 7 years
Most lenders will require that in order to do a HARP® refinance, you will have to benefit from it in one of the following ways:
- Reduction in the monthly principal and interest payment
- Reduction in the interest rate
- Reduction in the amortization term
- Move to a more stable product, e.g. ARM to Fixed-Rate
Who Owns Your Loan?
In order to be eligible for the Obama refinance / 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.
Refinancing: Important Video From The White House
Obama Refinance: How To Save Money
The single best way to save money when thinking about participating in the Obama refinance program is to shop multiple lenders. Shopping multiple lenders will make sure that you have the best chance to get the best rate and lender fees and close your loan in the shortest possible timeframe. When you shop around, you might be surprised at how much money you can save from one lender to the next. Just a few of the bigger lenders who can give you a quote include Bank of America, Wells Fargo and any number of smaller lenders who can also help you with the HARP® program.
Get started here with a free HARP® / Obama Refinance quote today!Click to See the Latest Mortgage Rates»