Categorized | Residential

Revised HARP Program Announced by United States Government

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In an effort to help more people qualify for refinancing on their mortgage loan, the United States government has announced some key changes to the Home Affordable Refinance Program, more commonly known as HARP. The program looks to limit the restrictions currently in place on refinancing, so as to allow more people to take advantage of the program.

The HARP program has been criticized greatly over the last year, as it had not nearly accomplished its original goals. The program has helped out fewer than one million homeowners, despite having been intended to benefit millions. The government believes that the new changes will open the program up to more, thus benefitting the housing market, and the economy as a whole.

The slated changes to the program include the elimination of certain fees for those that opt to refinance into a shorter-term mortgage. In addition, the current ceiling that has prevented those with underwater mortgages from refinancing has been lifted. The revisions also extended the HARP program for another two years.

Perhaps the most important change in the announced revisions is that of the elimination of some of the fees to encourage shorter-term mortgages. The elimination of these fees will encourage more borrowers to take advantage of HARP. The removal of the restriction on underwater mortgages will also greatly help many homeowners, thus putting more money into their pocket, and giving them more reason to avoid foreclosure.

There are many critics of the new changes, as they believe that not enough is included to truly make the program successful. These critics have said that the new revisions in HARP are more of the same, and that more major reform is needed to truly improve the state of the real estate market in the United States.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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