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#MyRefi: HARP 3.0 goes viral

By Crissinda Ponder · Bankrate.com
Tuesday, July 3, 2012
Posted: 1 pm ET

Thanks to a few social media giants, President Barack Obama's mortgage refinance proposal has gone viral.

Using the Twitter and Google Plus hashtag, #MyRefi, and an infographic, people are sharing the facts of the president's proposal as quickly as their fingers can type.

The plan is to simplify the mortgage refinancing process and "cut through the red tape" that currently keeps responsible homeowners from taking advantage of lower rates and lower monthly payments, according to whitehouse.gov.

The proposal has three parts:

  1. Expanding and improving the Home Affordable Refinance Program, or  HARP.
  2. Providing homeowners with incentives to take shorter-term loans, which will help them rebuild equity faster.
  3. Taking the refinancing idea in HARP and making it available for borrowers who don't have mortgages backed by government-sponsored enterprises or loans insured by the Federal Housing Administration.

Nicknamed HARP 3.0, the proposal is designed specifically for underwater homeowners. It would mean banks could no longer lock them out of refinancing because they owe more than what their home is worth.

Obama's proposal would also establish a quick, hassle-free process for homeowners who are current on mortgage payments and want to refinance.

But, how will HARP 3.0 help the economy?

According to the #MyRefi infographic, if the average homeowner is allowed to refinance, he or she could save $3,000 a year. That means more money to save for future investments, such as a child's college education, or more money to splurge on that new hot rod you've been eyeing.

It's your money, honey.

Bankrate's refinance calculator can help you figure out how much you would save.

Crissinda Ponder is a reporting intern for Bankrate. Follow her on Twitter @CrissiPonder.

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21 Comments
Jeff
July 24, 2012 at 1:58 pm

No Ron Mexico is right, it takes nothing away from those who lost because of hardships and etc...but the people who were able to sustain appear to get nothing for staying afloat. Our equity dropped as well, some lost jobs as well, but the homeowner was still able to manage and still is to date. Creating a HARP 3.0 program for those who have not falter will allow them to save, upgrade and purchase items which in turn will stimulate the economy. Had the government knocked off $100k for every current tax paying citizen with a mortgage, instead of forwarding it to the banks....you'd see some serious stimulation back into the economy.

SC
July 20, 2012 at 6:00 pm

I am not elligible for HARP 2 because of my current mortgage securitization date prior is on June 1, 2009. Is that going to change in HARP 3? Thank you.

dolores muro
July 19, 2012 at 11:30 am

need international banks who will honor harp 3 program HELP?

FireRx
July 10, 2012 at 8:49 am

I've been stuck in Harp 2.0 Hell for the past 5 months. so I don't think Harp 3.0 os going to change anything. Appaerantly , mine is stuck in Funding land. We'll see.

James Moorer
July 09, 2012 at 3:34 pm

I find Ron Mexico's statements offensive in that he makes the assumption that people people who are underwater are not responsible homeowners. The majority of people who fell behind did so because of the economy and loss of jobs, not just the fact that they were scammed by both their lender and broker.
He is also wrong that there aren't programs available right now that helps homeowners who are not behind on their mortgage get their interest rates reduced and thus lowering their payments so they too can save money. The REAL PROBLEM is that the banks don't want to give it to even well qualified homeowners. Why? Because then they lose money too. Do your homework Ron, find out what's really out there.

RonMexico
July 06, 2012 at 7:18 pm

This should never have been an issue for responsible and current mortgage borrowers. It boggles my mind that to date nothing has really be done to help us out. I know if I was able to refinance my house, I would save hundreds of dollars a month. With the money I save I can buy things like a new washer, dryer, and maybe a new car. By me doing that, I am able to stimulate the economy. To me that creates jobs and much needed tax revenue. Now I did not go to Harvard, Princeton or any other ivy league school, like are so called politiicians. Heck they teach you this stuff in good old public school. Why these guys cannot figure this stuff out is besides me.

RonMexico
July 06, 2012 at 5:54 pm

This should never have been an issue for responsible and current mortgage borrowers. It boggles my mind that to date nothing has really be done to help us out. I know if I was able to refinance my house, I would save hundreds of dollars a month. With the money I save I can buy things like a new washer, dryer, and maybe a new car. By me doing that, I am able to stimulate the economy. To me that creates jobs and much needed tax revenue. Now I did not go to Harvard, Princeton or any other ivy league school, like are so called politiicians. Heck they teach you this stuff in good old public school. We these guys cannot figure this stuff out is besides me.

Julie
July 06, 2012 at 4:08 pm

Something has to be done soon for us homeowners who are underwater and don't have loans backed by Freddie and Fannie and don't have a mortgage company that will work with them. This is just crazy. We make our payments on time but get penalized while others get bailed out or walk away. It is also sad that my house needs repairs but I can't afford to do them because you can't get an equity loan and you don't want to put it on credit cards in hope of being able to refinance you home.

Chad
July 05, 2012 at 6:52 pm

Will 3.0 allow people with Lender Paid Mortgage Insurance (LPMI) to qualify?

Mike
July 05, 2012 at 3:36 pm

Will 3.0 relax the June 1st 2009 cutoff? Thanks!