HARP To End This Year

MoneyTips

The Home Affordable Refinance Program (HARP) has arguably been one of the most successful programs to assist homeowners affected by the subprime mortgage crisis. According to HousingWire, almost 3.5 million homeowners have been assisted by the program, with around 1 million of those homeowners having been underwater (owing more on their home than it was worth).

HARP was created to help homeowners who were in decent enough financial shape to avoid foreclosure, but who were unable to secure refinancing because the drop in their home values left them underwater or otherwise unable to meet traditional criteria. HARP does not reduce the amount of principal owed, but it does rework the terms in order to secure better interest rates, lower monthly payments, or save on collective interest.

Many homeowners who can take advantage of HARP refinancing have already done so. However, ther...

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