Editor’s note: This is a transcript of the audio file.
If you’re one of the millions of underwater homeowners who were not able to refinance your mortgage under the old Home Affordable Refinance Program – you now have a second chance … and with much better interest rates. I’m Kristin Arnold with your Personal Finance Minute.
Greg McBride, senior financial analyst with Bankrate.com explains how this refreshed program will help facilitate refinancing for upside-down borrowers.
“Removing the loan-to-value cap means millions of homeowners, particularly in hard hit markets like Florida, California, Arizona and Nevada, who were on the outside looking in are now able to refinance at a time when mortgage rates are at record lows.
And under HARP 2.0 homeowners will see lower fees and they may not even need a property appraisal. Under the new HARP lenders are relieved of some of the buyback risks on the original loan, which until this point, had been a real hang-up to refinancing.”
HARP 2.0 could help more than 1.6 million homeowners who are underwater. For the latest information on HARP 2.0, just visit the Bankrate.com website. I’m Kristin Arnold.