The housing market crisis in 2007 affected thousands of people in the US. Many lost their homes because they could no longer afford to pay their mortgages. The federal government responded by setting up programs to help people keep their homes.
One of these programs is the Home Affordable Refinance Program (HARP). The latest end date was September 30, 2017. However, the government extended it to December 31, 2018.
If you qualify for the program, you should take advantage of the extension. You should call a HARP home loan company, such as Primary Residential Mortgage, Inc., as soon as possible.
What is HARP?
Two of the reasons many people lost their homes in the 2007 crisis were high housing prices and adjustable-rate mortgages. People were buying homes they could not afford because it was easy to get a loan. When the crash came, home values fell, and interest rates rose sharply.
Many people kept up with their mortgage payments. However, it was just a matter of time before they could no longer do that because of the high interest rates. HARP gives people with a good payment history a chance to get out of their adjustable-rate mortgage and replace it with a lower fixed-rate loan.
What was the reason for the extension?
The Federal Housing Finance Agency (FHFA), which oversees HARP, extended the deadline for two reasons. One is that more than 300,000 eligible homeowners have not yet applied for HARP. The other is the delay in launching a new home loan program to replace HARP, which should have fewer restrictions than HARP.
Why shouldn’t I wait for the new program?
If you qualify for the new program, you will no longer qualify for HARP. One of the requirements of HARP is that the loan should have originated before June 1, 2009. For the new program, the mortgage should have started before October 1, 2017.
The FHFA has already extended HARP three times, so it is likely this will be the last extension. If you qualify for HARP, contact a HARP home loan company as soon as possible. You might not have another chance.