Quick Access Resources:

• HARP Qualification Tool
• Florida HARP Application

Some people think that this talk about refinancing mortgages with HARP is just a trend or fad.  However, don’t use this as an excuse to pass up a good opportunity.  A lot of people are on the fence and asking themselves whether or not they should apply to HARP.

When the popular Home Affordable Refinance Program (HARP) was launched in April 2009, it was initially expected to end last June 10, 2010. But after some consideration, it was extended for another year, making June 30, 2011 as its end date.

However, after launching the program and while the U.S. government had high hopes of getting millions and millions of homeowners would grab this remarkable opportunity, the number of people who signed up and availed the program is way too low. Despite the fact that the program provides a wider range of benefits than typical refinancing scheme, only a portion of the whole population took advantage of this offer – approximately 800,000 plus homeowners in the last two years since its debut. A lot of speculations have been passed on and almost everyone is saying the HARP program have been a complete failure.

After so much deliberation, the government heeded massive amounts of homeowners’ concerns and changed the program into a more conducive refinancing strategy. The changes had been announced last October 24, 2011. It is expected that various mortgage lenders will implement the so-called HARP 2011 with the new guidelines and requirements effective December 1, 2011.

Here’s a list of the new changes to the HARP program. This includes a new end date, which gives other homeowners who are now more qualified to apply more time to reassess their status and apply.

• Extended until the end of 2013 – With the changes announced last month, more and more homeowners are asking on the new HARP program end date. The government decided to extend the offer until December 31, 2013 with hopes that the program will do better this time. All applications for financial recovery must be completed on or before the new end date.
• No more Loan- to-Value (LTV) limit – Previously, the HARP set a limit for the new loan, which is not to exceed more than 125% of the current house cost. With the new guidelines, homeowners can now apply for the program even if their new rates exceed the initial limit as long as they apply for a fixed rate mortgage. If they want to enjoy adjustable loan rates, LTV cap of 105% applies.

These are two of the most highlighted changes in the HARP program. The question does not lie on whether you should do HARP or not. It’s a matter of knowing if you really need to refinance and if HARP is the right solution. So, even if the HARP program is expected to end in two years time, it is still a blessing to know that homeowners like you have an option to refinance your mortgage rates and keep your homes. It’s your choice to make.