HARP 2 Refinance Program

Arizona HARP Refinance

Learn more about an Arizona HARP Refinance

One of the perks that HARP offers to a HARP eligible homeowner in Arizona is that a homeowner can refinance with less than 20% equity and NOT have to pay mortgage insurance.  Typically, when a homeowner has less than 20% equity in their home they are required to pay mortgage insurance.  With HARP’s main focus being on helping homeowners that are upside down refinance and leverage today’s record low mortgage rates, some retooling with regard to mortgage insurance guidelines was a must when creating HARP/HARP 2. After all, lowering ones mortgage rate and then adding mortgage insurance to their monthly payment would essentially defeat the purpose of refinancing with HARP/HARP 2.  The added mortgage insurance cost would offset the savings the HARP borrower would see as a result of lowering their rate.  Not a real effective plan!

Avoiding Mortgage Insurance on HARP 2

In order to make HARP make sense for an upside down homeowner Fannie Mae and Freddie Mac decided to make a concession.  If a homeowner did not have to pay mortgage insurance when they originated their existing HARP eligible mortgage or they are not paying mortgage insurance at the time they refinance with HARP/HARP 2 they will not have to pay mortgage insurance on their new refinanced HARP/HARP 2 loan.  However, if a homeowner DID have mortgage insurance (in other words they put less than 20% down) and were paying mortgage insurance at the time they refinanced with HARP/HARP 2 they will have to pay mortgage insurance on their new refinanced HARP or HARP 2 loan.

You can see if your current home and mortgage are HARP eligible:

By Jeremy House

 

 

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