Home Affordable Refinance Program® (HARP)
If Freddie Mac owns your mortgage and you are timely with your mortgage payments but unable to refinance because you have little or no equity in the home, you may be able to refinance to a lower interest rate or more stable mortgage through the federal Home Affordable Refinance Program® (HARP). This program is designed for homeowners who have not been able to refinance due to a decline in the value of their home. Visit our secure Loan Look-up toolto see if Freddie Mac owns your loan.
Freddie Mac's implementation of HARP may help you obtain a monthly payment you can afford, and must result in one or more of the following:
- A reduction in your interest rate and or your monthly principal and interest mortgage payment.
- A fixed-rate mortgage in place of an adjustable-rate, interest-only, or balloon/reset mortgage.
- A reduction in the term of your mortgage (e.g., from 30 years to 15 years).
View our list of the most frequently asked questions about this program.
If your loan is owned by Freddie Mac, there are two options to help you if you are making timely mortgage payments, but have been unable to refinance due to declining property values:
- Refinance through your existing lender (the company to which you send your monthly mortgage payments) if they are participating*. Since your lender already has the necessary files and documents, there are fewer requalification steps unless your principal and interest payment goes up more than 20 percent. No new appraisal is required in certain cases. Find out if your lender offers HARP.
- Refinance through a different participating lender. You may choose to pursue a refinance from a participating lender different than your existing lender. Because a different lender will not have your information or documents, they will need to requalify and re-underwrite your new loan. A new appraisal may not be required in certain cases. View our list of HARP participating lenders that may be able to work with you.
You may be eligible for HARP through your existing lender or a different participating lender if you:
- Own a 1- to 4-unit home as your primary residence, a 1-unit second home, or a 1- to 4-unit investment property.
- Are timely making your mortgage payments.
- Choose a fixed-rate mortgage or an adjustable-rate mortgage for your new mortgage. If you choose a fixed-rate mortgage, you can refinance the entire amount of your existing mortgage regardless of the value of your home, but if you choose an adjustable-rate mortgage, you cannot finance more than 105 percent of your home's value. A fixed-rate mortgage may be refinanced into an adjustable-rate mortgage as long as the refinance results in a reduced monthly principal and interest payment.
- Choose a mortgage solution that can improve the long-term affordability or stability of your mortgage with the refinance.
Mortgage insurance is not required if your existing mortgage does not have mortgage insurance, regardless of whether the loan-to-value ratio (ratio of the amount being borrowed to the market value of the property) is greater than 80 percent on the new mortgage.
Steps to Get Started with HARP
- See if Freddie Mac owns your loan
- Check your eligibility for HARP
- Get prepared and call your lender
- Find a HARP Lender
* The interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax-deductible for federal income tax purposes; and the consumer should consult a tax adviser for further information regarding the deductibility of interest and charges.
Note: This material is meant to provide general information about Freddie Mac's implementation of HARP and is not a comprehensive summary of the program. Specific additional terms, conditions, and limitations apply. Please contact your lender for more detailed information about the program and eligibility requirements. Also note that some servicers may choose not to offer these mortgages, or they may choose not to implement all of the flexibility available through the Home Affordable Refinance Program component of the changes.
Home Affordable Refinance Program® and HAMP® are registered trademarks of the U.S. Department of Treasury.