President Obama’s government launched Home Affordable Refinance Program, or HARP, has been extended through June of 2011. Obama’s administration designed such a program in an effort to aid homeowners currently owning a mortgage where the home has a market value lower than what is owed.
The HARP program provides the opportunity for those that qualify to modify and refinance their mortgage to a fixed rate as low as 4%, possibly reduce the loan balance, extend the term of the loan to 30 or 40 yrs, and as an end result have a lower monthly payment in hopes of avoiding the foreclosure process.
Lenders will consider the HARP program when its borrower is facing financial difficulty or other hardships and won’t benefit from other modification programs.
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