Rate-and-term refinance
Replace the current mortgage to change the rate, term or loan structure. The useful comparison includes closing costs, break-even time and how long you expect to keep the new loan.
HARP LOAN UPDATE
HARP ended in 2018. Your refinance conversation should start with today’s options.
If an old search result or advertisement brought you here, you are in the right place for a current answer. Impact Home Lending can compare eligible refinance and home-equity strategies using your present mortgage, property value and goals.
THE DIRECT ANSWER
HARP is no longer an available mortgage program.
The Home Affordable Refinance Program was created after the housing crisis to help certain borrowers with Fannie Mae or Freddie Mac loans refinance when they had little or no equity. The Federal Housing Finance Agency reported that HARP expired in December 2018.
That does not automatically mean you cannot refinance. It means your options need to be reviewed under current loan programs, lender requirements and property information.
WHAT MAY REPLACE THE OLD HARP SEARCH
Compare the solution—not an expired program name.
The best path depends on what you want to change and whether the benefit is large enough to justify the new loan’s costs and terms.
Cash-out refinance
Replace the current mortgage with a larger loan and receive eligible equity as cash. Compare the new payment, rate and total cost with leaving the first mortgage in place.
HELOC or home-equity loan
Keep the current first mortgage and add a second lien when eligible. Compare the variable or fixed payment, access period, fees and combined monthly obligation.
Mortgage-insurance review
Depending on the existing loan, property value and current qualification, an appraisal, cancellation request or refinance may provide a path to changing mortgage-insurance costs.
MAKE AN APPLES-TO-APPLES DECISION
Know the break-even point before replacing your mortgage.
Compare the current loan with each eligible alternative using the same balance, property value and timeline. Review the interest rate, APR, points or credits, lender and third-party costs, complete monthly payment, cash received or required, and the time needed to recover the closing costs.
A lower payment can come from a lower rate, a longer term or both. Extending the repayment period may reduce the payment while increasing the total interest paid, so the long-term goal matters.
COMMON QUESTIONS
What homeowners should ask now.
01Is the HARP mortgage program still available?+
No. The Federal Housing Finance Agency reported that HARP expired in December 2018. Advertising that presents HARP as a currently available mortgage program is outdated.
02Can I refinance if I have limited equity?+
Possibly. Eligibility depends on the existing loan, current property value, occupancy, credit, income, debts and available lender or investor programs. A current review is more useful than relying on former HARP requirements.
03Should I refinance only when the new rate is lower?+
Not necessarily. Homeowners may also compare term, payment, mortgage insurance, debt consolidation, cash needs and future flexibility. The rate, closing costs and expected time in the loan should be evaluated together.
04What should I gather for a refinance review?+
Start with the current mortgage statement, estimated property value, homeowners-insurance information, income and asset documents, and the goal you want the financing to accomplish. Additional documents may be required.
OFFICIAL SOURCES
Verify the program history and compare current costs.
CURRENT OPTIONS, CURRENT NUMBERS
Review my refinance options →Find out whether refinancing helps your goal today.
Program availability and qualification depend on the borrower, property, lender and current guidelines.