Once you purchase your home, our lending team is here to help you with your continuing financing needs. As your home is often your largest financial asset, you may be able to put your equity to work, reduce your interest rate so that you can save money every month, or shorten the term of your loan so that you home is paid off sooner!

There are many ways refinancing can improve your overall financial health:

  • If your goal is to own your home free and clear, you may be able to shorten the term of your loan by raising your payment a little to reach your goal sooner.
    • You may find that refinancing your home is a good way to obtain some cash for home improvements, an investment or even to purchase a vacation home.
    • If rates are low, you may be able to lower your payment and improve your cash flow.
  • If you currently have an adjustable rate mortgage (ARM), you may gain peace of mind by refinancing into a fixed-rate loan.
  • If your plans are changing and you may not by in your home as long as originally thought, refinancing from a fixed-rate loan to an ARM could reduce your monthly payments significantly.

To get you started… here is an overview of the popular HARP program. When you’re ready, give us a call and we will help you explore and choose the refinancing program that best fits your needs.

Home Affordable Refinance Program (HARP)

Backed by the federal government, the updated HARP, commonly referred to as HARP 2.0 or “Obama Refinancing Plan,” makes it easier for homeowners to refinance their homes at a lower rate.

Deadline for HARP refinancing: December 31, 2015.

Even if your home has declined in value, it may be possible that a HARP loan can help you lower your payments or change to a more stable loan type. Borrowers can refinance regardless of how far their homes have fallen in value, and many homeowners will not have to get an appraisal, making their refinance process smoother and faster.

In most cases, occupancy changes–such as the property changing from a primary residence to an investment property–are permitted under HARP.

You may qualify for HARP if:

  • Your mortgage is held by either Fannie Mae or Freddie Mac
    You must have a Note Date guaranteed by Fannie Mae or Freddie Mac on or before May 31, 2009.
  • You are current on your mortgage and have no more than one late mortgage payment over the past 12 months–and no record of mortgage late payments within the last six months
  • The current loan-to-value ratio is higher than 80%
  • You have a reasonable ability to pay the new mortgage payments and the refinance improves the long-term affordability or stability of your loan

You may only refinance once through HARP. If your existing loan has private mortgage insurance, you will need the same amount of insurance coverage for a refinance under HARP. If your existing loan does not have private mortgage insurance, it will not be required.