HARP 3.0 program is
yet to see the light of the day but it is highly anticipated nonetheless. There
are already plenty of people who are pretty kicked about the program.
It is
likely to help homeowners who have not received any mortgage
refinancing-related assistance from either Freddie Mac or Fannie Mae. When you
come to think of it, it is big deal indeed! The troika of FHA, Fannie Mae, and
Freddie Mac is in ownership of 90% of the new mortgages being taken in United
States of America. This is where HARP
3.0 mortgage program can play such an important role.
However, from 2001 to
2007 the situation was quite different. Even in the decade gone by the non-GSE
component formed a major part of the housing market in the country. In 2005, as
per data from Federal Reserve, 27.5% of the mortgages were Alt-A mortgages. As
per present rules, all these homeowners are no longer considered to be eligible
for any help from the government’s HARP program. With HARP 3.0 these borrowers
too could come under the fold of governmental assistance. This is expected to
be the major benefit afforded by Home Affordable Refinance Program 3.0. It is undoubtedly going to be a major boost
for them. Know
More About Today...!
It is also expected
that the program would benefit people with A Paper mortgages. These are ones
that were taken over by subprime lenders in the decade gone by. The main reason
for that was the fact that the rates of repayment were lower in the subprime market
as opposed to the traditional market for loans. It might sound incredulous but
it is a fact! Thanks to HARP 3.0 plan these borrowers will be benefited as
well. At that time, in the traditional market 30 year mortgages, taken at a
fixed rate, came with an interest rate of 5.5%.
At the same time, in
the subprime market these mortgages were available for an interest rate of
5.25%. Even though numerically the margin does not seem that much in actuality
it is quite a lot of money. For more information on how do you qualify for
HARP 2.0 please look up MORTGAGREFINANC101.COM
