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options for keeping your home

Home Affordable Refinance Program Loans (HARP)

If you’re up-to-date on your mortgage payments, but have been unable to get traditional refinancing because the value of your home has declined, you may be able to refinance with a HARP loan through the federal Making Home Affordable Program. A HARP loan may provide you with a new, more affordable, more stable mortgage. To be eligible, which of these criteria applies?

  1. Your mortgage must be owned by a commercial lender.
  2. Your mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
  3. Your current mortgage balance must be over $250,000.

“B” is correct. The current loan-to-value (LTV) ratio also must be greater than 80 percent, and you must have a good payment history on your mortgage for at least 12 months. HARP loans require fees for application and refinancing.