USA homeowners have the chance of getting lower interest rates on their mortgage. This is even when the value of their mortgage is greater than their house’s value. Interest rates are constantly increasing as years pass by. However, if you get a 4% interest rate, that is actually a good sign for you to start your Harp 2.0.

It takes around 30-35 days for your Harp 2.0 mortgage refinance to start. Then, it will take another month for your new loan to be set up by the new lender. This gives you not only enough time, but also a chance to save money because you will not need to pay for your loan for about a month. Also, the process has become easier than before and this is because Fannie is now allowing appraisal waivers. This means that you will not have to pay for your home’s appraisal. This will also reduce the time that you will spend in order to process your loan because of the lesser information required.

What makes Harp 2.0 Different?

The HARP (Home Affordable Refinance Program) was introduced way back 2009. This program allows homeowners to refinance their mortgage which was owned by Fannie Mae and Freedie Mac at lower interest rates.

During 2011, the Harp 2.0 was introduced. Its benefits are almost the same with the previous one. The following are some of the benefits:

• No limits in terms of LTV (loan-to-value). Originally, it was required that that the LTV of the loan should not be 125% of the total home value. However, this requirement was removed when Harp 2.0 was put into practice.
• Lender’s fees were capped, particularly those having LTV ratios. Capping also applies to homeowners who have refinanced to fixed mortgages which last for 15 years.
• Processing period becomes a lot faster, thus making it easier for homeowners to apply for such.

Harp 2.0 has several benefits so it is really a good option to opt for it. However, still, you will need to seek the help of professionals and in San Diego, you should only trust the professionals at Community Mortgage. Contact us at (619) 692-3630 for more info.